Healthcare infrastructure firm Welltower, Inc. (NYSE: WELL) has revised its guidance for the second quarter of 2022. The company now expects earnings in the range of $0.22 to $0.25 per share, compared to the earlier outlook of $0.20 to $0.25 per share.
According to TipRanks, the consensus earnings estimate for the second quarter stands at $0.18 per share.
Further, the company anticipates normalized funds from operations (FFO) between $0.84 and $0.87 per share versus the previous guidance range of $0.82 to $0.87 per share.
Q1 Results
Last month, Welltower reported earnings of $.14 per share for the first quarter, in line with analysts’ expectations. The company had posted earnings of $0.17 per share in the year-ago quarter.
Normalized FFO was $0.82 per share, and cash and cash equivalents, and restricted cash stood at $4.1 billion as of March 31.
About Welltower
Ohio-based Welltower is a real estate investment trust (REIT) with investments in medical office buildings, senior housing facilities, post-acute care facilities as well as assisted living and memory care communities.
Analyst’s Take
On May 20, RBC Capital analyst Michael Carroll maintained a Buy rating on the stock and raised the price target to $100 from $97 (14.8% upside potential).
The analyst expects the company’s profit to grow in the mid-teens range, driven by a recovery in its portfolio and continued investments.
Overall, the stock has a Strong Buy consensus rating based on 14 unanimous Buys. WELL’s average price target of $101.86 implies 16.9% upside potential from current levels.
Bloggers’ Stance
TipRanks data shows that financial bloggers are 100% Bullish on WELL, compared to the sector average of 70%.
Conclusion
The senior housing industry is expected to grow and reach pre-pandemic levels in the next couple of years. This will help Welltower surpass its guidance, which, in turn, is expected to boost its stock price further.
