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Brookdale Senior (BKD) Q2 Occupancy Jumps, Growth Trend Persists

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Brookdale Senior Living Inc. (BKD - Free Report) recently announced that its June 2024 weighted average occupancy grew 140 basis points (bps) from the year-ago level to 78.2%, thanks to greater than pre-pandemic average move-in volumes and lower move-outs.

The weighted average occupancy for the second quarter increased 160 bps year over year, reaching 78.1%. This marks a great start to the year, along with a similar 160 bps year-over-year increase to 77.9% in the first quarter. This positive trend is expected to persist, driven by the projected growth in the senior population, which will likely enhance the company's overall performance.

The company is expected to have witnessed 32 straight months of year-over-year increases in weighted average occupancy. This suggests that it is witnessing continuous growth in occupancy rates, which is expected to result in higher resident fee revenues. In the first quarter of 2024, resident fee revenues increased 4.3% year over year to $744.2 million, while RevPAR (revenue per available unit) and Adjusted EBITDA grew 6.7% and 10.1% year over year, respectively.

Per BKD’s earlier guidance, second-quarter 2024 RevPAR was expected to grow 6.25-6.75% year over year, and adjusted EBITDA was projected to be in the $93-$98 million range. The increases in RevPAR and occupancy likely contributed positively to its results.

The Zacks Consensus Estimate for the second-quarter 2024 bottom line indicates a 13.3% improvement from the prior year's figure. It has witnessed no movement in the estimate in the past week. It's worth noting that BKD has beaten earnings estimates in two of the last four quarters and missed on the other occasions.

Price Performance

Brookdale Senior shares have jumped 68.3% in the past year, outperforming the industry average of 43.1%.

Zacks Investment Research
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Zacks Rank & Stocks to Consider

Brookdale Senior currently carries a Zacks Rank #3 (Hold).

Investors interested in the broader Medical space may look at some better-ranked players like Altimmune, Inc. (ALT - Free Report) , Elevance Health, Inc. (ELV - Free Report) and Annovis Bio, Inc. (ANVS - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Zacks Consensus Estimate for Altimmune’s 2024 bottom line suggests a 6.3% year-over-year improvement. ALT beat earnings estimates in each of the past four quarters, with an average surprise of 10.3%. The consensus mark for its current-year revenues is pegged at $250 million, indicating a massive year-over-year increase.

The Zacks Consensus Estimate for Elevance Health’s current-year earnings implies a 12.4% increase from the year-ago reported figure. ELV beat earnings estimates in each of the last four quarters, with an average surprise of 2.8%. The consensus mark for its current-year revenues is pegged at $171.8 billion, which indicates a 0.9% year-over-year increase.

The Zacks Consensus Estimate for Annovis Bio’s current-year earnings suggests a 50% year-over-year improvement. It has witnessed two upward estimate revisions over the past 60 days against no movement in the opposite direction. ANVS beat earnings estimates in three of the past four quarters and missed once.

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