Health Care Earnings: Here’s Why Shares are Down Now

Health Care REIT Inc. (NYSE:HCN) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are down 0.2%.

Health Care REIT Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 4.49% to $0.93 in the quarter versus EPS of $0.89 in the year-earlier quarter.

Revenue: Rose 53.21% to $682.1 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Health Care REIT Inc. reported adjusted EPS income of $0.93 per share. By that measure, the company beat the mean analyst estimate of $0.92. It beat the average revenue estimate of $675.3 million.

Quoting Management: “Health Care REIT’s unique relationships, immersion in health care, and asset allocation position the company to capture above average growth in all economic climates,” commented George L. Chapman, Chairman and CEO of Health Care REIT. “Our portfolio generated excellent 3.8% same store cash NOI growth during the second quarter, headlined by an 8.4% increase in our seniors housing operating portfolio. Our relationship investment strategy generated two new portfolio partners, Revera and Avery Healthcare, in the attractive Canadian and U.K. markets. These investments bring our year-to-date total to $5 billion in high-quality, accretive health care real estate expected to produce attractive cash flow growth and total returns for our shareholders.”

Key Stats (on next page)…

Revenue increased 9.16% from $624.86 million in the previous quarter. EPS increased 43.08% from $0.65 in the previous quarter.

Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $0.96 and has not changed. For the current year, the average estimate has moved down from a profit of $3.76 to a profit of $3.72 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at]