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Tickers in this Article: VTR
Ventas (NYSE:VTR) announced its results for the most recent quarter on July 26, 2012. Ventas is a real estate investment trust, with a portfolio of seniors housing and healthcare properties.

In most situations, when earnings do not meet analyst estimates, a business' stock price will tend to drop. On the other hand, when actual earnings beat estimates by a significant amount, the share price will likely surge. SEE: 12 Things You Need To Know About Financial Statements

The Numbers: Ventas' revenues topped expectations, though the company's EPS fell short of predictions. The company reported 25 cents per share versus the 92 cents per share estimate and revenues of $616.4 million versus the $591.9 million estimate. EPS rose 127.3% while revenue climbed 69.1% from the same period last year. Ventas has averaged revenue growth of 91.2% over the past five quarters. Ventas reported net income of $74 million during the second quarter. This is 276.2% higher than the year-ago quarter. Last quarter marked the fourth in a row of rising net income. Profits rose 85% in the first quarter, more than twofold in the fourth quarter of the last fiscal year and 77.7% four quarters ago from the year earlier.

Management Quote: "Ventas offers both growth and defense for investors," Ventas Chairman and Chief Executive Officer Debra A. Cafaro said. "We continued our record of consistent, strong growth in the second quarter, as we delivered exceptional results from our Atria- and Sunrise-managed communities, closed $1.2 billion in accretive acquisitions, maintained a fortress balance sheet and posted record earnings. We are pleased to increase our full-year outlook, reflecting the strength in our business model and execution."

A Look Back: Net income has increased more than twofold year-over-year on average across the last five quarters. The biggest gain came in the most recent quarter, when income climbed more than threefold from the year-earlier quarter.

Looking Ahead: Analysts appear increasingly negative about the company's results for the next quarter. The average estimate for the third quarter has moved down from 95 cents a share to 94 cents over the last 60 days. A decreasing earning estimate is a negative sign and usually leads to a drop in the stock price. For the fiscal year, the average estimate has moved up from $3.70 a share to $3.73 over the last ninety days.

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