Uncovering Potential: Welltower's Earnings Preview

Welltower WELL is gearing up to announce its quarterly earnings on Tuesday, 2025-02-11. Here's a quick overview of what investors should know before the release.

Analysts are estimating that Welltower will report an earnings per share (EPS) of $1.12.

Anticipation surrounds Welltower's announcement, with investors hoping to hear about both surpassing estimates and receiving positive guidance for the next quarter.

New investors should understand that while earnings performance is important, market reactions are often driven by guidance.

Performance in Previous Earnings

In the previous earnings release, the company beat EPS by $0.07, leading to a 5.18% increase in the share price the following trading session.

Here's a look at Welltower's past performance and the resulting price change:

Market Performance of Welltower's Stock

Shares of Welltower were trading at $141.81 as of April 10. Over the last 52-week period, shares are up 58.32%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release.

Analyst Views on Welltower

For investors, grasping market sentiments and expectations in the industry is vital. This analysis explores the latest insights regarding Welltower.

Welltower has received a total of 10 ratings from analysts, with the consensus rating as Outperform. With an average one-year price target of $173.6, the consensus suggests a potential 22.42% upside.

Analyzing Ratings Among Peers

The analysis below examines the analyst ratings and average 1-year price targets of Ventas, Alexandria Real Estate and Healthpeak Properties, three significant industry players, providing valuable insights into their relative performance expectations and market positioning.

• Analysts currently favor an Outperform trajectory for Ventas, with an average 1-year price target of $72.56, suggesting a potential 48.83% downside.
• Analysts currently favor an Neutral trajectory for Alexandria Real Estate, with an average 1-year price target of $115.0, suggesting a potential 18.91% downside.
• Analysts currently favor an Outperform trajectory for Healthpeak Properties, with an average 1-year price target of $23.75, suggesting a potential 83.25% downside.

Key Findings: Peer Analysis Summary

Within the peer analysis summary, vital metrics for Ventas, Alexandria Real Estate and Healthpeak Properties are presented, shedding light on their respective standings within the industry and offering valuable insights into their market positions and comparative performance.

Key Takeaway:

Welltower ranks highest in Revenue Growth among its peers. It also leads in Gross Profit margin. However, it has the lowest Return on Equity. Overall, Welltower is positioned favorably compared to its peers in terms of financial performance metrics.

Discovering Welltower: A Closer Look

Welltower owns a diversified healthcare portfolio of 2,271 in-place properties spread across the senior housing, medical office, and skilled nursing/postacute 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.

Welltower: Delving into Financials

Market Capitalization: Boasting an elevated market capitalization, the company surpasses industry averages. This signals substantial size and strong market recognition.

Positive Revenue Trend: Examining Welltower's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 29.18% as of 31 December, 2024, showcasing a substantial increase in top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Real Estate sector.

Net Margin: Welltower's net margin is below industry averages, indicating potential challenges in maintaining strong profitability. With a net margin of 5.41%, the company may face hurdles in effective cost management.

Return on Equity (ROE): The company's ROE is below industry benchmarks, signaling potential difficulties in efficiently using equity capital. With an ROE of 0.39%, the company may need to address challenges in generating satisfactory returns for shareholders.

Return on Assets (ROA): Welltower's ROA falls below industry averages, indicating challenges in efficiently utilizing assets. With an ROA of 0.24%, the company may face hurdles in generating optimal returns from its assets.

Debt Management: Welltower's debt-to-equity ratio is below the industry average. With a ratio of 0.52, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

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.