Ventas Earnings: Another Solid Sales Quarter

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S&P 500 (NYSE:SPY) component Ventas Inc. (NYSE:VTR) reported higher profit for the second quarter as revenue showed growth. Ventas is a real estate investment trust, with a portfolio of seniors housing and healthcare properties.

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Ventas Inc. Earnings Cheat Sheet

Results: Net income for Ventas Inc. rose to $74 million (25 cents per share) vs. $19.7 million (11 cents per share) in the same quarter a year earlier. This is a more than threefold rise from the year-earlier quarter.

Revenue: Rose 69.1% to $616.4 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Ventas Inc. fell short of the mean analyst estimate of 92 cents per share. It beat the average revenue estimate of $591.9 million.

Quoting Management: “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.”

Key Stats:

The company has seen double-digit year-over-year percentage revenue growth for the past five quarters. Over that span, the company has averaged growth of 91.2%, with the biggest boost coming in the first quarter when revenue rose more than twofold from the year earlier quarter.

The company has now seen its net income increase for three consecutive quarters. In the first quarter, net income rose 85% and in the fourth quarter of the last fiscal year, the figure rose more than twofold.

The company fell short of estimates last quarter after beating the mark the quarter before with net income of 91 cents versus a mean estimate of net income of 89 cents per share.

Looking Forward: 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 sixty days. The average estimate for the fiscal year is $3.73 per share, a rise from $3.70 ninety days ago.

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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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