Welltower (NYSE:WELL) is preparing to release its quarterly earnings on Monday, 2024-10-28. Here's a brief overview of what investors should keep in mind before the announcement.
Analysts expect Welltower to report an earnings per share (EPS) of $1.04.
Welltower bulls will hope to hear the company announce they've not only beaten that estimate, but also to provide positive guidance, or forecasted growth, for the next quarter.
New investors should note that it is sometimes not an earnings beat or miss that most affects the price of a stock, but the guidance (or forecast).
Historical Earnings Performance
During the last quarter, the company reported an EPS beat by $0.04, leading to a 0.53% increase in the share price on the subsequent day.
Here's a look at Welltower's past performance and the resulting price change:
| Quarter | Q3 2024 | Q2 2024 | Q1 2024 | Q4 2023 | Q3 2023 |
|---|---|---|---|---|---|
| EPS Estimate | 1.04 | 1.01 | 0.94 | ||
| EPS Actual | 1.11 | 1.05 | 1.01 | 0.96 | 0.92 |
| Price Change % | 5.0% | 1.0% | -1.0% | 7.000000000000001% | 2.0% |
Welltower Share Price Analysis
Shares of Welltower were trading at $135.12 as of November 05. Over the last 52-week period, shares are up 55.86%. Given that these returns are generally positive, long-term shareholders should be satisfied going into this earnings release.
Analyst Insights on Welltower
For investors, staying informed about market sentiments and expectations in the industry is paramount. This analysis provides an exploration of the latest insights on Welltower.
A total of 6 analyst ratings have been received for Welltower, with the consensus rating being Neutral. The average one-year price target stands at $123.17, suggesting a potential 8.84% downside.
Understanding Analyst Ratings Among Peers
This comparison focuses on the analyst ratings and average 1-year price targets of Ventas, Alexandria Real Estate and Healthpeak Properties, three major players in the industry, shedding light on their relative performance expectations and market positioning.
Ventas is maintaining an Outperform status according to analysts, with an average 1-year price target of $67.33, indicating a potential 50.17% downside. For Alexandria Real Estate, analysts project an Neutral trajectory, with an average 1-year price target of $124.33, indicating a potential 7.99% downside. Healthpeak Properties received a Outperform consensus from analysts, with an average 1-year price target of $24.88, implying a potential 81.59% downside. Insights: Peer Analysis
The peer analysis summary provides a snapshot of key metrics for Ventas, Alexandria Real Estate and Healthpeak Properties, illuminating their respective standings within the industry. These metrics offer valuable insights into their market positions and comparative performance.
| Company | Consensus | Revenue Growth | Gross Profit | Return on Equity |
|---|---|---|---|---|
| Welltower | Neutral | 23.64% | $798.36M | 1.52% |
| Ventas | Outperform | 7.52% | $521.35M | 0.20% |
| Alexandria Real Estate | Neutral | 9.64% | $542.48M | 0.90% |
| Healthpeak Properties | Outperform | 24.54% | $405.82M | 0.99% |
Key Takeaway:
Welltower ranks at the top for Revenue Growth and Gross Profit among its peers. It is in the middle for Return on Equity.
About Welltower
Welltower owns a diversified healthcare portfolio of 2,137 in-place properties spread across the senior housing, medical office, and skilled nursing/post-acute care sectors. The portfolio includes over 100 properties in both Canada and the United Kingdom as the company looks for additional investment opportunities in countries with mature healthcare systems that operate similarly to that of the United States.
Key Indicators: Welltower's Financial Health
Market Capitalization: Positioned above industry average, the company's market capitalization underscores its superiority in size, indicative of a strong market presence.
Revenue Growth: Welltower's revenue growth over a period of 3 months has been noteworthy. As of 30 September, 2024, the company achieved a revenue growth rate of approximately 23.64%. This indicates a substantial increase in the company's top-line earnings. When compared to others in the Real Estate sector, the company excelled with a growth rate higher than the average among peers.
Net Margin: The company's net margin is a standout performer, exceeding industry averages. With an impressive net margin of 22.37%, the company showcases strong profitability and effective cost control.
Return on Equity (ROE): Welltower's ROE surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 1.52% ROE, the company effectively utilizes shareholder equity capital.
Return on Assets (ROA): Welltower's ROA surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 0.95% ROA, the company effectively utilizes its assets for optimal returns.
Debt Management: Welltower's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.53.
To track all earnings releases for Welltower visit their earnings calendar on our site.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
