Analysts are expecting the healthcare REIT to post a year over year decline in earnings per share but a rise in revenue for the most recent quarter.
The company has been forecast to report earnings of 51 cents per share on revenue of $602.2 million for the September ended period.
HCP's earnings came in at 54 cents per share on revenue of $596.64 million for the 2014 third quarter.
Shares of HCP are up by 0.22% to $37.26 in midday trading on Monday afternoon.
HCP is an Irvine, CA-based REIT serving the U.S. healthcare industry. The company's portfolio consists of investments in various healthcare segments: senior housing, post-acute/skilled nursing, life science, medical office and hospital.
Separately, TheStreet Ratings team rates HCP INC as a Hold with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation:
We rate HCP INC (HCP) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, deteriorating net income and disappointing return on equity.
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- HCP's revenue growth has slightly outpaced the industry average of 6.2%. Since the same quarter one year prior, revenues rose by 12.5%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- Net operating cash flow has remained constant at $363.92 million with no significant change when compared to the same quarter last year. Even though HCP INC's cash flow growth was minimal, the firm managed to surpass its industry's average growth rate of -72.17%.
- The gross profit margin for HCP INC is rather high; currently it is at 58.08%. Regardless of HCP's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 26.61% trails the industry average.
- The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. In comparison to the other companies in the Real Estate Investment Trusts (REITs) industry and the overall market, HCP INC's return on equity is significantly below that of the industry average and is below that of the S&P 500.
- Reflecting the weaknesses we have cited, including the decline in the company's earnings per share, HCP has underperformed the S&P 500 Index, declining 11.38% from its price level of one year ago. Looking ahead, other than the push or pull of the broad market, we do not see anything in the company's numbers that may help reverse the decline experienced over the past 12 months. Despite the past decline, the stock is still selling for more than most others in its industry.
- You can view the full analysis from the report here: HCP