We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Brookdale (BKD) Down 7% Since Q2 Earnings Miss on Lower Interest
Read MoreHide Full Article
Brookdale Senior Living Inc.’s (BKD - Free Report) shares have declined 7% since it reported weak second-quarter 2024 results on Aug 8, 2024, after the closing bell. An elevated expense level and declining interest income affected its profits. The negatives were partially offset by the growing occupancy rate and Revenue per available unit (“RevPAR”).
BKD incurred a second-quarter adjusted loss of 17 cents per share, wider than the Zacks Consensus Estimate of a loss of 13 cents per share and the year-ago quarter’s loss of 2 cents per share.
Total revenues and other operating income amounted to $777.5 million, which improved nearly 3.6% year over year, attributable to growth in resident and management fee revenues.
Brookdale Senior Living Inc. Price, Consensus and EPS Surprise
Resident fees of $739.7 million rose 4.2% year over year on the back of a higher revenue per occupied unit ("RevPOR") and occupancy rate. Meanwhile, management fees inched up 4.2% year over year.
RevPOR grew 4.3%, resulting from annual rate increases effective from the very beginning of 2024. Weighted average occupancy improved 160 basis points year over year, driven by BKD’s initiatives to restore occupancy levels. RevPAR improved 6.4% year over year.
Facility operating expenses of $537.5 million increased 1.2% year over year due to continued inflationary challenges and higher estimated insurance expenses. Nevertheless, the downside was partly offset by the divestiture of communities and lower contract labor costs.
General and administrative costs, including certain items, were $46.7 million, up 3% year over year.
Interest income of $4.7 million tumbled 22.9% year over year. Brookdale incurred a net loss of $37.7 million, wider than the year-ago quarter’s loss of $4.5 million. The wider loss resulted from higher costs and a gain registered in the year-ago period.
Adjusted EBITDA rose 20.2% year over year to $97.8 million.
Financial Update (as of Jun 30, 2024)
Brookdale exited the second quarter with cash and cash equivalents of $290 million, which advanced from the 2023-end level of $278 million. Total assets of $5.45 billion dipped from the $5.57 billion level at 2023 end.
Long-term debt, less of the current portion, was $3.68 billion, which inched up from the $3.66 billion figure as of Dec 31, 2023. The current portion of long-term debt amounted to $60.9 million.
Total equity of $341.7 million fell from the 2023-end figure of $405.2 million.
BKD generated an operating cash flow of $55.7 million in the second quarter of 2024, lower than the year-ago period’s $63.8 million. Adjusted free cash outflow was $5.5 million, which compares favorably with the $7.5 million outflow recorded in the year-ago quarter.
Guidance
The company expects third-quarter RevPAR growth to be within 6.25-6.75% year over year. Also, it expects adjusted EBITDA for the third quarter in the range of $90-$95 million.
The company estimates non-development capital expenditures, net of anticipated lessor reimbursements, to be roughly $180 million in 2024.
Zacks Rank & Key Picks
Brookdale currently carries a Zacks Rank #4 (Sell).
Some better-ranked stocks in the broader Medical space are Universal Health Services, Inc. (UHS - Free Report) , Tenet Healthcare Corporation (THC - Free Report) and Quest Diagnostics Incorporated (DGX - Free Report) . While Universal Health and Tenet Healthcare currently sport a Zacks Rank #1 (Strong Buy) each, Quest Diagnostics carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Universal Health Services’ 2024 bottom line suggests 51% year-over-year growth. UHS has witnessed seven upward estimate revisions over the past month against no movement in the opposite direction. It beat earnings estimates in each of the last four quarters, with the average surprise being 14.6%.
The Zacks Consensus Estimate for Tenet Healthcare’s 2024 bottom line is pegged at $10.70 per share, which indicates 53.3% growth from a year ago. During the past month, THC has witnessed eight upward estimate revisions against none in the opposite direction. It beat earnings estimates in each of the last four quarters, with the average surprise being 58.5%.
The Zacks Consensus Estimate for Quest Diagnostics’ 2024 full-year earnings implies a 2% increase from the year-ago reported figure. DGX beat earnings estimates in each of the last four quarters, with an average surprise of 3.3%. The consensus mark for its current-year revenues is pegged at $9.5 billion, which indicates a 3% year-over-year increase.
See More Zacks Research for These Tickers
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Brookdale (BKD) Down 7% Since Q2 Earnings Miss on Lower Interest
Brookdale Senior Living Inc.’s (BKD - Free Report) shares have declined 7% since it reported weak second-quarter 2024 results on Aug 8, 2024, after the closing bell. An elevated expense level and declining interest income affected its profits. The negatives were partially offset by the growing occupancy rate and Revenue per available unit (“RevPAR”).
BKD incurred a second-quarter adjusted loss of 17 cents per share, wider than the Zacks Consensus Estimate of a loss of 13 cents per share and the year-ago quarter’s loss of 2 cents per share.
Total revenues and other operating income amounted to $777.5 million, which improved nearly 3.6% year over year, attributable to growth in resident and management fee revenues.
Brookdale Senior Living Inc. Price, Consensus and EPS Surprise
Brookdale Senior Living Inc. price-consensus-eps-surprise-chart | Brookdale Senior Living Inc. Quote
Q2 Key Performances
Resident fees of $739.7 million rose 4.2% year over year on the back of a higher revenue per occupied unit ("RevPOR") and occupancy rate. Meanwhile, management fees inched up 4.2% year over year.
RevPOR grew 4.3%, resulting from annual rate increases effective from the very beginning of 2024. Weighted average occupancy improved 160 basis points year over year, driven by BKD’s initiatives to restore occupancy levels. RevPAR improved 6.4% year over year.
Facility operating expenses of $537.5 million increased 1.2% year over year due to continued inflationary challenges and higher estimated insurance expenses. Nevertheless, the downside was partly offset by the divestiture of communities and lower contract labor costs.
General and administrative costs, including certain items, were $46.7 million, up 3% year over year.
Interest income of $4.7 million tumbled 22.9% year over year. Brookdale incurred a net loss of $37.7 million, wider than the year-ago quarter’s loss of $4.5 million. The wider loss resulted from higher costs and a gain registered in the year-ago period.
Adjusted EBITDA rose 20.2% year over year to $97.8 million.
Financial Update (as of Jun 30, 2024)
Brookdale exited the second quarter with cash and cash equivalents of $290 million, which advanced from the 2023-end level of $278 million. Total assets of $5.45 billion dipped from the $5.57 billion level at 2023 end.
Long-term debt, less of the current portion, was $3.68 billion, which inched up from the $3.66 billion figure as of Dec 31, 2023. The current portion of long-term debt amounted to $60.9 million.
Total equity of $341.7 million fell from the 2023-end figure of $405.2 million.
BKD generated an operating cash flow of $55.7 million in the second quarter of 2024, lower than the year-ago period’s $63.8 million. Adjusted free cash outflow was $5.5 million, which compares favorably with the $7.5 million outflow recorded in the year-ago quarter.
Guidance
The company expects third-quarter RevPAR growth to be within 6.25-6.75% year over year. Also, it expects adjusted EBITDA for the third quarter in the range of $90-$95 million.
The company estimates non-development capital expenditures, net of anticipated lessor reimbursements, to be roughly $180 million in 2024.
Zacks Rank & Key Picks
Brookdale currently carries a Zacks Rank #4 (Sell).
Some better-ranked stocks in the broader Medical space are Universal Health Services, Inc. (UHS - Free Report) , Tenet Healthcare Corporation (THC - Free Report) and Quest Diagnostics Incorporated (DGX - Free Report) . While Universal Health and Tenet Healthcare currently sport a Zacks Rank #1 (Strong Buy) each, Quest Diagnostics carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Universal Health Services’ 2024 bottom line suggests 51% year-over-year growth. UHS has witnessed seven upward estimate revisions over the past month against no movement in the opposite direction. It beat earnings estimates in each of the last four quarters, with the average surprise being 14.6%.
The Zacks Consensus Estimate for Tenet Healthcare’s 2024 bottom line is pegged at $10.70 per share, which indicates 53.3% growth from a year ago. During the past month, THC has witnessed eight upward estimate revisions against none in the opposite direction. It beat earnings estimates in each of the last four quarters, with the average surprise being 58.5%.
The Zacks Consensus Estimate for Quest Diagnostics’ 2024 full-year earnings implies a 2% increase from the year-ago reported figure. DGX beat earnings estimates in each of the last four quarters, with an average surprise of 3.3%. The consensus mark for its current-year revenues is pegged at $9.5 billion, which indicates a 3% year-over-year increase.