Q3 Earnings Preview for Global Medical (NYSE:GMRE)

in EARNINGS/INVESTING IDEAS by

Global Medical REIT Inc. (NYSE:GMRE) is scheduled to report Q3 earnings results after markets close for trading on November 4, 2020.

The company is expected to report earnings of -$0.12/share on revenue of $22.671 million. The consensus earnings per share (EPS) of -$0.12/share is based on a poll of 5 analysts and represents a decline in eps of −710.0% over the same quarter last year, when the company reported earnings of $0.02/share.

The revenue forecast of $22.671 million based on a poll of 5 analysts implies a year-over-year (YoY) growth in revenue of 24.6%. Last year the company reported $18.195 million in revenue for the quarter.

Expected to report EPS of -$0.12/share for Q3, 2020
Metric Expected Prior Year YoY Change
Revenue $22.67 $18.20 24.6%
EPS -$0.12 $0.02 −710.0%

Earnings Call Trends

Historically, management has exceeded analyst expectations 1 out of the last 8 tracked quarters, and missed 6 quarters, and met expectations 1 quarters

What are your expectations from Global Medical REIT Inc. for earnings this quarter? Let us know in the comments!

Analyst Expected vs. Reported EPS
Quarter Expected Reported Surprise Result
Q2, 2020 $0.03 $0 -100% Missed
Q1, 2020 $0.05 $0.03 −36.8% Missed
Q4, 2019 $0.04 $0.03 −20.0% Missed
Q3, 2019 $0.03 $0.02 −37.5% Missed
Q2, 2019 $0.06 $0.03 −47.1% Missed
Q1, 2019 $0.02 $0.02 0% Met
Q4, 2018 $0.25 $0.31 22.4% Beat
Q3, 2018 $0.05 $0.01 −78.6% Missed

In the following table, we summarize the company’s stock price movements after earnings releases. The “Price Day Prior” column shows the closing stock price on the day before the earnings report, and the “Price Next Day” column shows the stock price at the end of the trading day after the earnings report. After the last earnings report for the period ending June 30, 2020, the stock price reacted by increasing 4.8%.

Stock Price Performance After Earnings
Report Date Price Day Prior Price Next Day Change % Result
August 5, 2020 $12.02 $12.60 4.8% Increase
May 6, 2020 $9.59 $10.26 7.0% Increase
March 4, 2020 $14.34 $15.02 4.7% Increase
November 6, 2019 $11.41 $11.67 2.3% Increase

The other question to consider is one of earnings manipulation. There is a lot of pressure on management each quarter to deliver on earnings expectations. The Beneish M-Score is a statistical model that provides some insight into whether the company might be manipulating earnings. With a Beneish M-Score of −2.26, the model suggests that the company is not likely to be an earnings manipulator. A value of −2.26 implies a 1.2% chance of earnings manipulation.

Fundamentals And Technical Analysis

Global Medical REIT Inc. is currently trading at $12.31/share, down −5.5% for the day. The company is trading at approximately 77.2% of its 52-week high of $15.95/share. The company’s stock price is down −2.3% since the last earnings report and down −7.4% over the previous week. The company’s 14 Day Relative Price Index (RSI) of 37.27 suggests the company is trading in technically neutral territory. The RSI is considered overbought when above 70 and oversold when below 30.


NYSE:GMRE Stock Price Chart
Source: Finbox

The current share price implies a price-to-earnings (P/E) multiple of 165.61 and a forward P/E multiple of 170.07.

Global Medical REIT Inc.’s current share price also implies a price-to-book (P/B) multiple of 1.68. The following table summarizes some other key fundamental ratios:

Data as of October 28, 2020
Metric Value
Last Reported Fiscal Period Key FY2020.Q2
Period End Date June 30, 2020
Stock Price (Current) $12.31
P/E Ratio 165.6x
P/E Ratio (Fwd) 170.1x
PEG Ratio −2.4
Total Debt / Total Capital 40.6%
Levered Free Cash Flow $43.631 million
EV / EBITDA 20.0x

Finbox

Global Medical REIT Inc. is a small-cap stock with a market capitalization of $602.7 million and a total enterprise value of $1.174 billion. The company operates in the Real Estate sector and the Equity Real Estate Investment Trusts (REITs) industry.

Global Medical REIT Inc. is net-lease medical office REIT that acquires purpose-built specialized healthcare facilities and leases those facilities to strong healthcare systems and physician groups with leading market share.

Expertise: financial technology, analyzing market trends. Brian is a founder at finbox.io, where he’s focused on building tools that make it faster and easier for investors to research stock fundamentals. Brian’s background is in physics & computer science and previously worked as a software engineer at GE Healthcare. He enjoys applying his expertise in technology to help find market trends that impact investors. Brian can be reached at brian@finbox.io or at +1 (516) 778-6257.

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