Why is HCP, Inc (HCP) down 3% since its last earnings report?

A month has passed since the company’s last earnings report HCP, Inc. health care worker The stock lost almost 3% during that time, underperforming the market.

Will the recent negative trend continue leading up to the stock’s next earnings release, or will there be a breakout? Before we dive into the recent reaction from investors and analysts, let’s take a quick look at the company’s most recent earnings report in order to get a better handle on the important factors influencing the situation.

FFO of HCP Inc. for the fourth quarter exceeds estimates, revenues are lower

HCP Inc. reported fourth-quarter 2016 adjusted FFO per share of $0.59, topping the Zacks Consensus Estimate of $0.57. However, FFO was lower than the previous quarter and amounted to $0.80.

For the full year 2016, FFO was $2.74 per share, down from the $3.16 reported in 2015. The Zacks Consensus Estimate for 2016 was $2.72.

For the quarter, the company reported revenues of $540 million, missing the Zacks Consensus Estimate of $563 million. However, this amount was higher than a year earlier and amounted to USD 520.3 million.

Total revenue for 2016 was $2.13 billion, up from $1.94 billion in 2015. The Zacks Consensus Estimate calls for 2016 revenues of $2.49 billion.

Behind the headlines

HCP Inc. Net Operating Income (NOI) for three months in cash increased by 2.6% year-on-year.

Additionally, the company completed 1.1 million square feet of leases across its life sciences and medical office portfolio, including 450,000 square feet of new leases and 668,000 square feet of renewals.

It is worth noting that on October 31, 2016, the company completed the spin-off of Quality Care Properties, Inc. In addition, in the reported quarter, the company
HCP Inc. completed acquisitions valued at $345 million and closed transactions valued at $472 million.

Finally, HCP Inc. ended the fourth quarter with cash and cash equivalents of $94.7 million.

Perspectives

HCP Inc. expects full-year 2017 adjusted FFO per share to be in the range of $1.89-$1.95. The company forecasts an increase in net operating revenues from the real estate portfolio in 2017 in the range of 2.5-3.5%.

How have estimates changed since then?

It turns out that the new estimates have been flat over the past month. There was one upward revision for the current quarter compared to one downward.

HCP, Inc. Price and consensus

HCP, Inc. Price and consensus | Quote from HCP, Inc

VGM results

Currently, the shares of HCP, Inc. they have a poor growth rating of “F”, however, their growth rate performs much better at the “A” level. However, the stock is rated a “D” for value, putting it in the bottom 40% for this investment strategy.

Overall, the stock has a Total VGM Score of ‘D’. If you don’t focus on one strategy, you should be interested in this result.

The company’s shares are only suitable for dynamics based on our style results.

Perspectives

The stock has a Zacks Rank #3 (Hold). We expect an inline return on the stock over the next few months.

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