Medical Properties Trust Earnings: Here’s Why Investors Don’t Like These Results

Medical Properties Trust Inc. (NYSE:MPW) delivered a profit and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 0.94%.

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Medical Properties Trust Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 38.89% to $0.25 in the quarter versus EPS of $0.18 in the year-earlier quarter.

Revenue: Rose 34.59% to $58.4 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Medical Properties Trust Inc. reported adjusted EPS income of $0.25 per share. By that measure, the company missed the mean analyst estimate of $0.26. It missed the average revenue estimate of $59.4 million.

Quoting Management: “Medical Properties Trust remains the only healthcare REIT focused exclusively on funding hospitals and other related facilities, and our first quarter results demonstrate the power of this strategy,” said Edward K. Aldag, Jr., Chairman, President and CEO of Medical Properties Trust. “Over the past 10 years, we have invested approximately $3.0 billion in 101 transactions with an average first year cap rate of approximately 10%. Recently, we have delivered four consecutive quarters of year-over-year normalized FFO per share growth as well as a strong, stable and well-covered dividend. During the first quarter we raised $173 million through an offering of 12.65 million common shares, which, when combined with our revolving credit facility, provides us with nearly $500 million in immediately available resources to continue to acquire hospital real estate with double digit long-term returns. We are delighted with our results and look forward to continued success.”

Key Stats (on next page)…

Revenue increased 1.72% from $57.41 million in the previous quarter. EPS decreased 0% from $0.25 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.27 to a profit $0.26. For the current year, the average estimate has moved up from a profit of $1.07 to a profit of $1.1 over the last ninety days.

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