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Brookdale (BKD) Q1 Adjusted EBITDA to Beat View, Occupancy Up
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Brookdale Senior Living Inc. (BKD - Free Report) recently announced that its March weighted average occupancy climbed 250 basis points from the year-ago level to 76.1%. Considering the first quarter weighted average occupancy level of 76.3%, which jumped 290 basis points, it is safe to say that the company has witnessed a favorable start this year.
Brookdale Senior Living has witnessed 17 straight months of year-over-year increases in weighted average occupancy. This signals the company’s ongoing improvement in occupancy levels, which will likely lead to higher resident fee revenues. The momentum is likely to continue in the coming days and buoy its results.
BKD’s 2022 resident fee revenues witnessed 1.6% year-over-year growth to $2,585.5 million. Its preliminary results indicate that RevPAR growth for the first quarter was around 12.9% year over year. This is likely to have boosted the top line. The Zacks Consensus Estimate for first-quarter 2023 total revenues is pegged at $752.2 million, signaling an 11% jump from the year-ago figure. Also, the company expects adjusted EBITDA for the first quarter to be significantly higher than the guided range of $70-$75 million.
However, the weighted average occupancy for the first quarter declined 80 basis points from fourth-quarter levels, which is in line with the pre-pandemic seasonality. This might indicate that the industry is overcoming the pandemic woes and getting back to its normal shape.
The continued increased occupancy levels are expected to bring higher maintenance, food costs and labor expenses for Brookdale Senior Living amid the ongoing inflationary pressures, which can weigh on the margins. It expects the 2023 first quarter facility operating expense to be in line with the fourth quarter 2022 reported figure of $531.7 million, which was higher than the 2022 first quarter total facility operating expense level of $512.8 million.
The Zacks Consensus Estimate for the first quarter of 2023 bottom line is pegged at a loss of 29 cents per share. Nevertheless, the estimate indicates an improvement of 46.3% from the year-ago loss of 54 cents per share.
Price Performance
Brookdale Senior Living shares have gained 52% in the past three months compared with the industry’s rise of 4.1%.
The Zacks Consensus Estimate for Avanos Medical’s 2023 earnings predicts 1.8% year-over-year growth. AVNS beat earnings estimates in all the past four quarters, with the average being 11%.
The consensus mark for Viemed’s 2023 earnings indicates an 87.5% year-over-year increase. Furthermore, the consensus estimate for VMD’s revenues in 2023 suggests 15% year-over-year growth.
The Zacks Consensus Estimate for Ensign Group’ 2023 earnings suggests 13% year-over-year growth. Also, the consensus mark for ENSG’ 2023 revenues suggests 18.4% year-over-year growth.
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Brookdale (BKD) Q1 Adjusted EBITDA to Beat View, Occupancy Up
Brookdale Senior Living Inc. (BKD - Free Report) recently announced that its March weighted average occupancy climbed 250 basis points from the year-ago level to 76.1%. Considering the first quarter weighted average occupancy level of 76.3%, which jumped 290 basis points, it is safe to say that the company has witnessed a favorable start this year.
Brookdale Senior Living has witnessed 17 straight months of year-over-year increases in weighted average occupancy. This signals the company’s ongoing improvement in occupancy levels, which will likely lead to higher resident fee revenues. The momentum is likely to continue in the coming days and buoy its results.
BKD’s 2022 resident fee revenues witnessed 1.6% year-over-year growth to $2,585.5 million. Its preliminary results indicate that RevPAR growth for the first quarter was around 12.9% year over year. This is likely to have boosted the top line. The Zacks Consensus Estimate for first-quarter 2023 total revenues is pegged at $752.2 million, signaling an 11% jump from the year-ago figure. Also, the company expects adjusted EBITDA for the first quarter to be significantly higher than the guided range of $70-$75 million.
However, the weighted average occupancy for the first quarter declined 80 basis points from fourth-quarter levels, which is in line with the pre-pandemic seasonality. This might indicate that the industry is overcoming the pandemic woes and getting back to its normal shape.
The continued increased occupancy levels are expected to bring higher maintenance, food costs and labor expenses for Brookdale Senior Living amid the ongoing inflationary pressures, which can weigh on the margins. It expects the 2023 first quarter facility operating expense to be in line with the fourth quarter 2022 reported figure of $531.7 million, which was higher than the 2022 first quarter total facility operating expense level of $512.8 million.
The Zacks Consensus Estimate for the first quarter of 2023 bottom line is pegged at a loss of 29 cents per share. Nevertheless, the estimate indicates an improvement of 46.3% from the year-ago loss of 54 cents per share.
Price Performance
Brookdale Senior Living shares have gained 52% in the past three months compared with the industry’s rise of 4.1%.
Image Source: Zacks Investment Research
Zacks Rank & Other Stocks to Consider
Brookdale Senior Living currently carries a Zacks Rank #2 (Buy). Investors interested in the broader medical space may look at other top-ranked players like Avanos Medical, Inc. (AVNS - Free Report) , Viemed Healthcare, Inc. (VMD - Free Report) and The Ensign Group, Inc. (ENSG - Free Report) , each carrying a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Avanos Medical’s 2023 earnings predicts 1.8% year-over-year growth. AVNS beat earnings estimates in all the past four quarters, with the average being 11%.
The consensus mark for Viemed’s 2023 earnings indicates an 87.5% year-over-year increase. Furthermore, the consensus estimate for VMD’s revenues in 2023 suggests 15% year-over-year growth.
The Zacks Consensus Estimate for Ensign Group’ 2023 earnings suggests 13% year-over-year growth. Also, the consensus mark for ENSG’ 2023 revenues suggests 18.4% year-over-year growth.