Medical Properties Trust Earnings: Here’s Why Investors 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 up 2.27%.

Medical Properties Trust Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 9.09% to $0.24 in the quarter versus EPS of $0.22 in the year-earlier quarter.

Revenue: Rose 10.73% to $57.5 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Medical Properties Trust Inc. reported adjusted EPS income of $0.24 per share. By that measure, the company missed the mean analyst estimate of $0.25. It missed the average revenue estimate of $60.31 million.

Quoting Management: “MPT’s investment strategy has always focused on acquiring quality hospital real estate that achieves the industry’s most attractive returns,” said Edward K. Aldag, Jr., Chairman, President and CEO of Medical Properties Trust. “The Company has now completed more than $3.3 billion in acquisitions, and more than $407 million year-to-date, subject to completion of the $283.3 million transaction announced this morning. This amount exceeds our acquisition target for the full-year, and with five months remaining, we expect to complete additional acquisitions. These strategic investments, which generate high yields, are each highly accretive and with built-in inflation escalations, support future FFO per share growth and dividend coverage, create additional diversification in our portfolio and continue to enhance shareholder value.”

Key Stats (on next page)…

Revenue decreased 2.06% from $58.71 million in the previous quarter. EPS decreased 4% from $0.25 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 $0.28 and has not changed. For the current year, the average estimate is a profit of $1.08, which is the same with that ninety days ago.

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