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Omega Healthcare Reports Disappointing Q2 Results

Maryland-based real estate investment trust firm Omega Healthcare (OHI) has reported lower-than-expected Q2 2021 financial results. The company has investments in the long-term healthcare industry, mainly in assisted living and skilled nursing facilities.

Omega reported earnings per share (EPS) of $0.36, lower than $0.43 in the second quarter of 2020 and the Street’s estimate of $0.41. (See Omega stock chart on TipRanks)

Quarterly revenues totaled $257.4 million, slightly above $256.4 million reported last year, but missing analysts’ expectations of $272.63 million.

The CEO of Omega, Taylor Pickett, said, “Facility occupancy improved in the quarter but still sits meaningfully below pre-pandemic levels, and as a result, many operators continue to rely on federal and state government support.”

Two months ago, Wolfe Research analyst Andrew Rosivach initiated coverage on the stock with a Hold rating and a price target of $43 (19.4% upside potential). The analyst said, “The company’s earnings growth will not participate in a broader commercial real estate recovery given different corporate drivers.”

Overall, the stock has a Moderate Buy consensus based on 4 Buys and 4 Holds. The average Omega Healthcare price target of $40.71 implies 13% upside potential. Shares have gained 14.8% over the past year.

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