Have you been eager to see how HCP Inc. (NYSE:HCP) performed in Q1 in comparison with the market expectations? Let’s quickly scan through the key facts from this Irvine, CA-based healthcare real estate investment trust’s (REIT) earnings release this morning:
A FFO Beat
HCP came out with funds from operations (FFO) as adjusted of 48 cents per share, beating the Zacks Consensus Estimate of 46 cents.
Results reflect better-than-expected revenue numbers for the quarter.
How Was the Earnings Surprise Trend?
HCP has a decent surprise history. Before posting a FFO beat in Q1, the company delivered a positive surprise in each of the trailing four quarters, as shown in the chart below. Overall, the company surpassed the Zacks Consensus Estimate by an average of 3.72% in the trailing four quarters.
HCP, Inc. Price and EPS Surprise
Revenue Came In Higher Than Expected
HCP posted revenues of $479.2 million, which surpassed the Zacks Consensus Estimate of $458.8 million. However, it compared unfavorably with the year-ago number of $492.2 million.
Key Developments to Note
HCP completed the sale of six assets totaling $275 million to Brookdale Senior Living.
The company had agreed to the transition of 24 assets to Atria Senior Living, out of which 13 have already been transitioned.
HCP closed the prior announced $112 million sale of Tandem mezzanine loan investment.
HCP reiterated 2018 FFO as adjusted guidance range, which it expects to be $1.77-$1.83 per share. Further, the company reaffirmed the 2018 SPP cash NOI growth guidance in the range of 0.25- 1.75%.
What Zacks Rank Says
HCP currently has a Zacks Rank #3 (Hold). However, since the latest earnings performance is yet to be reflected in the estimate revisions, the rank is subject to change.
(You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.)
Note: Anything related to earnings presented in this write-up represent funds from operations (FFO) — a widely used metric to gauge the performance of REITs.
Check back later for our full write up on this HCP earnings report!
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HCP, Inc. (HCP): Free Stock Analysis Report
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