Health Care REIT, Inc. First Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Health Care REIT, Inc. (NYSE:HCN) will unveil its latest earnings on Tuesday, May 8, 2012. Health Care REIT is a real estate investment trust that invests in and manages senior housing and health care real estate.

Health Care REIT, Inc. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for profit of 87 cents per share, a rise of 24.3% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from 91 cents. Between one and three months ago, the average estimate moved down. It also has dropped from 88 cents during the last month. For the year, analysts are projecting net income of $3.65 per share, a rise of 7% from last year.

Past Earnings Performance: The company beat estimates last quarter after falling short in the prior two. In the fourth quarter of the last fiscal year, the company reported profit of 91 cents per share versus a mean estimate of net income of 90 cents per share. In the third quarter of the last fiscal year, the company missed estimates by 9 cents.

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Wall St. Revenue Expectations: On average, analysts predict $418.7 million in revenue this quarter, a rise of 63.9% from the year-ago quarter. Analysts are forecasting total revenue of $1.72 billion for the year, a rise of 21.1% from last year’s revenue of $1.42 billion.

Analyst Ratings: Analysts seem relatively indifferent about Health Care REIT with 10 of 19 analysts surveyed maintaining a hold rating.

A Look Back: In the fourth quarter of the last fiscal year, profit rose 12.4% to $44.5 million (14 cents a share) from $39.6 million (25 cents a share) the year earlier, exceeding analyst expectations. Revenue rose more than twofold to $393.7 million from $186.5 million.

Key Stats:

With double-digit revenue growth the past four quarters, this earnings release is a chance to keep that positive trend going. The company has averaged year-over-year revenue growth of more than twofold over the last four quarters.

After experiencing income increases the last three quarters, the company is hoping to keep the good news coming with this earnings announcement. Net income rose 70.5% in the second quarter of the last fiscal year and 732% in the third quarter of the last fiscal year before increasing again in the fourth quarter of the last fiscal year.

Stock Price Performance: Between March 6, 2012 and May 2, 2012, the stock price had risen $2.81 (5.2%), from $54.06 to $56.87. The stock price saw one of its best stretches over the last year between February 1, 2012 and February 8, 2012, when shares rose for six straight days, increasing 1.6% (+92 cents) over that span. It saw one of its worst periods between March 30, 2012 and April 10, 2012 when shares fell for seven straight days, dropping 4.7% (-$2.56) over that span.

(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)

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