Health Care REIT Increases Sales but Misses Estimates on Earnings
Health Care REIT (NYS: HCN) filed its 10-K on Feb. 17. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Health Care REIT beat expectations on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share contracted significantly.
Margins contracted across the board.
Health Care REIT logged revenue of $407.4 million. The eight analysts polled by S&P Capital IQ wanted to see net sales of $388.7 million on the same basis. GAAP reported sales were much higher than the prior-year quarter's $191.6 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.22. The four earnings estimates compiled by S&P Capital IQ forecast $0.27 per share on the same basis. GAAP EPS of $0.14 for Q4 were 52% lower than the prior-year quarter's $0.29 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 68.5%, 390 basis points worse than the prior-year quarter. Operating margin was 33.8%, 500 basis points worse than the prior-year quarter. Net margin was 8.6%, 1,540 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $413.6 million. On the bottom line, the average EPS estimate is $0.28.
Next year's average estimate for revenue is $1.67 billion. The average EPS estimate is $1.30.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 443 members out of 471 rating the stock outperform, and 28 members rating it underperform. Among 149 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 141 give Health Care REIT a green thumbs-up, and eight give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Health Care REIT is outperform, with an average price target of $52.88.
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At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Motley Fool newsletter services have recommended buying shares of Health Care REIT. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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