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What's in the Offing for Ventas Stock This Earnings Season?
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Ventas, Inc. (VTR - Free Report) is scheduled to report fourth-quarter and full-year 2024 results on Feb. 12, after market close. The quarterly results are likely to display year-over-year growth in revenues and normalized funds from operations (FFO) per share.
See the Zacks Earnings Calendar to stay ahead of market-making news.
In the last reported quarter, this Chicago-based healthcare real estate investment trust (REIT) delivered a normalized FFO per share of 80 cents, in line with the Zacks Consensus Estimate. The quarterly results reflected better-than-anticipated revenues. Ventas’ same-store cash net operating income increased year over year on strong performance across the portfolio.
Ventas’ normalized FFO per share surpassed the Zacks Consensus Estimate in two of the trailing four quarters and met in the remaining period, with the average beat being 1.67%. The graph below depicts this surprise history:
In the fourth quarter, Ventas’ senior housing operating portfolio (SHOP) is likely to have benefited from an aging U.S. population and a rise in healthcare expenditure by this age cohort, which is generally higher than the average population. With the segment witnessing positive net move-ins, occupancy is expected to have remained high.
A well-diversified tenant base with long-term leases is expected to have contributed well to stable rental revenue generation, boosting the top line.
However, the triple-net leased properties and outpatient medical and research portfolio segments are likely to be affected during the to-be-reported quarter.
Further, high interest expenses are expected to have cast a pall on the company’s performance to some extent.
VTR’s Q4 Projections
The Zacks Consensus Estimate for fourth-quarter resident fees and services is pegged at $850.1 million, suggesting an increase from $775.2 million reported in the year-ago period.
The Zacks Consensus Estimate for fourth-quarter revenues is currently pegged at $1.26 billion, implying an 8.1% increase from the prior-year quarter’s reported figure.
However, the Zacks Consensus Estimate for fourth-quarter triple-net leased rental income is pegged at $151.6 million, suggesting a decrease from the $155.3 million reported in the year-ago period.
The consensus mark for outpatient medical and research portfolio rental income for the fourth quarter is pegged at $220.8 million, indicating decline from $222.1 million reported in the year-ago period.
Ventas’ activities during the soon-to-be-reported quarter were inadequate to gain analysts’ confidence. The Zacks Consensus Estimate for fourth-quarter FFO per share has remained unrevised at 80 cents over the past two months. However, the figure implies an increase of 5.3% from the year-ago quarter’s reported number.
VTR’s 2024 Projections
For 2024, Ventas expects current-year normalized FFO per share in the range of $3.14-$3.18. The company estimated total same-store cash NOI growth between 6.75% and 8.00%. The SHOP segment's same-store cash NOI is projected between 14% and 16%. The Outpatient Medical and Research Portfolio segment's same-store cash NOI is expected in the range of 2.75-3.25%, while the estimation for triple-net leased same-store cash NOI is projected in the range of 1.5-2.0%.
For the full year, the Zacks Consensus Estimate for normalized FFO per share is pegged at $3.16. The figure indicates 5.7% growth year over year, while revenues are projected to increase 8.9% year over year to $4.90 billion.
What Our Quantitative Model Predicts
Our proven model does not conclusively predict a beat in terms of FFO per share for Ventas this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an FFO beat, which is not the case here.
Ventas currently has an Earnings ESP of 0.00% and carries a Zacks Rank of 3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks That Warrant a Look
Here are two stocks from the broader REIT sector — Highwoods Properties (HIW - Free Report) and Host Hotels & Resorts (HST - Free Report) — that you may want to consider, as our model shows that these have the right combination of elements to report a surprise this quarter.
Host Hotels is slated to report quarterly numbers on Feb. 19. HST has an Earnings ESP of +1.50% and carries a Zacks Rank of 3 presently.
Note: Anything related to earnings presented in this write-up represents funds from operations (FFO), a widely used metric to gauge the performance of REITs.
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What's in the Offing for Ventas Stock This Earnings Season?
Ventas, Inc. (VTR - Free Report) is scheduled to report fourth-quarter and full-year 2024 results on Feb. 12, after market close. The quarterly results are likely to display year-over-year growth in revenues and normalized funds from operations (FFO) per share.
See the Zacks Earnings Calendar to stay ahead of market-making news.
In the last reported quarter, this Chicago-based healthcare real estate investment trust (REIT) delivered a normalized FFO per share of 80 cents, in line with the Zacks Consensus Estimate. The quarterly results reflected better-than-anticipated revenues. Ventas’ same-store cash net operating income increased year over year on strong performance across the portfolio.
Ventas’ normalized FFO per share surpassed the Zacks Consensus Estimate in two of the trailing four quarters and met in the remaining period, with the average beat being 1.67%. The graph below depicts this surprise history:
Ventas, Inc. Price and EPS Surprise
Ventas, Inc. price-eps-surprise | Ventas, Inc. Quote
Factors at Play
In the fourth quarter, Ventas’ senior housing operating portfolio (SHOP) is likely to have benefited from an aging U.S. population and a rise in healthcare expenditure by this age cohort, which is generally higher than the average population. With the segment witnessing positive net move-ins, occupancy is expected to have remained high.
A well-diversified tenant base with long-term leases is expected to have contributed well to stable rental revenue generation, boosting the top line.
However, the triple-net leased properties and outpatient medical and research portfolio segments are likely to be affected during the to-be-reported quarter.
Further, high interest expenses are expected to have cast a pall on the company’s performance to some extent.
VTR’s Q4 Projections
The Zacks Consensus Estimate for fourth-quarter resident fees and services is pegged at $850.1 million, suggesting an increase from $775.2 million reported in the year-ago period.
The Zacks Consensus Estimate for fourth-quarter revenues is currently pegged at $1.26 billion, implying an 8.1% increase from the prior-year quarter’s reported figure.
However, the Zacks Consensus Estimate for fourth-quarter triple-net leased rental income is pegged at $151.6 million, suggesting a decrease from the $155.3 million reported in the year-ago period.
The consensus mark for outpatient medical and research portfolio rental income for the fourth quarter is pegged at $220.8 million, indicating decline from $222.1 million reported in the year-ago period.
Ventas’ activities during the soon-to-be-reported quarter were inadequate to gain analysts’ confidence. The Zacks Consensus Estimate for fourth-quarter FFO per share has remained unrevised at 80 cents over the past two months. However, the figure implies an increase of 5.3% from the year-ago quarter’s reported number.
VTR’s 2024 Projections
For 2024, Ventas expects current-year normalized FFO per share in the range of $3.14-$3.18. The company estimated total same-store cash NOI growth between 6.75% and 8.00%. The SHOP segment's same-store cash NOI is projected between 14% and 16%. The Outpatient Medical and Research Portfolio segment's same-store cash NOI is expected in the range of 2.75-3.25%, while the estimation for triple-net leased same-store cash NOI is projected in the range of 1.5-2.0%.
For the full year, the Zacks Consensus Estimate for normalized FFO per share is pegged at $3.16. The figure indicates 5.7% growth year over year, while revenues are projected to increase 8.9% year over year to $4.90 billion.
What Our Quantitative Model Predicts
Our proven model does not conclusively predict a beat in terms of FFO per share for Ventas this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an FFO beat, which is not the case here.
Ventas currently has an Earnings ESP of 0.00% and carries a Zacks Rank of 3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks That Warrant a Look
Here are two stocks from the broader REIT sector — Highwoods Properties (HIW - Free Report) and Host Hotels & Resorts (HST - Free Report) — that you may want to consider, as our model shows that these have the right combination of elements to report a surprise this quarter.
Highwoods Properties, scheduled to report quarterly numbers on Feb. 11, has an Earnings ESP of +0.22% and carries a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Host Hotels is slated to report quarterly numbers on Feb. 19. HST has an Earnings ESP of +1.50% and carries a Zacks Rank of 3 presently.
Note: Anything related to earnings presented in this write-up represents funds from operations (FFO), a widely used metric to gauge the performance of REITs.