Omega Healthcare Investors Earnings Preview

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Investors hope Omega Healthcare Investors (NYS: OHI) will top analyst estimates once again after beating predictions by $0.02 in the previous quarter. The company will unveil its latest earnings on Tuesday, February 7. Omega Healthcare Investors is a real estate investment trust which invests in income-producing healthcare facilities, mainly long-term care facilities located in the United States.

What analysts say:

  • Buy, sell, or hold?: Analysts think investors should stand pat on Omega Healthcare Investors with six of eight analysts rating it hold. Analysts don't like Omega Healthcare Investors as much as competitor Healthcare Realty Trust overall. Four out of 15 analysts rate Healthcare Realty Trust a buy compared to two of eight for Omega Healthcare Investors.
  • Revenue Forecasts: On average, analysts predict $73.6 million in revenue this quarter. That would represent a rise of 3.5% from the year-ago quarter.
  • Wall Street Earnings Expectations: The average analyst estimate is earnings of $0.47 per share. Estimates range from $0.46 to $0.48.

What our community says:
CAPS All-Stars are solidly behind the stock, with 97.3% awarding it an "outperform" rating. Most of the community backs the All-Stars, with 96% granting it a rating of "outperform." Fools are impressed with Omega Healthcare Investors, though the message boards have been quiet lately with only 54 posts in the past 30 days. Omega Healthcare Investors has a bullish CAPS rating of five out of five stars that is about on par with the Fool community assessment.

Management:
Revenue has now gone up for three straight quarters.

Now let's look at how efficient management is at running the business. Traditionally, margins represent the efficiency with which companies capture portions of sales dollars. The following table shows net margins over the past four quarters. 

QuarterQ3Q2Q1Q4
Net Margin28.7%24.5%-8.4%7%

One final thing: If you want to keep tabs on Omega Healthcare Investors movements, and for more analysis on the company, make sure you add it to your Watchlist.

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Earnings estimates provided by Zacks.

At the time this article was published

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