NEW YORK (TheStreet) -- Health Care REIT (HCN) shares are up 0.55% to $69.75 in afternoon trading on Monday ahead of the release of the real estate investment trust's second quarter earnings results tomorrow morning before the market open.
The Toledo, OH-based company is expected to report second quarter earnings of $1.08 per share on revenue of $922.79 million.
In the previous quarter the company matched analysts' $1.04 per share earnings expectations while generating revenue of $894.20 million that topped consensus expectations of $893.60 million.
For the year the company provided earnings guidance between $4.25 and $4.35 per share.
Separately, last week the company declared a quarterly dividend of 82.5 cents per share payable August 20 to shareholders of record on August 11.
TheStreet Ratings team rates HEALTH CARE REIT INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate HEALTH CARE REIT INC (HCN) a BUY. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, impressive record of earnings per share growth, compelling growth in net income and reasonable valuation levels. We feel its strengths outweigh the fact that the company shows weak operating cash flow."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- HCN's revenue growth has slightly outpaced the industry average of 6.6%. Since the same quarter one year prior, revenues rose by 10.7%. Growth in the company's revenue appears to have helped boost the earnings per share.
- Compared to where it was a year ago today, the stock is now trading at a higher level, reflecting both the market's overall trend during that period and the fact that the company's earnings growth has been robust. Looking ahead, unless broad bear market conditions prevail, we still see more upside potential for this stock, despite the fact that it has already risen over the past year.
- HEALTH CARE REIT INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, HEALTH CARE REIT INC increased its bottom line by earning $1.40 versus $0.09 in the prior year. This year, the market expects an improvement in earnings ($2.02 versus $1.40).
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Real Estate Investment Trusts (REITs) industry. The net income increased by 212.1% when compared to the same quarter one year prior, rising from $66.38 million to $207.15 million.
- You can view the full analysis from the report here: HCN Ratings Report