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Brookdale Senior (BKD) Sees Y/Y Increase in Q1 Occupancy Levels
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Brookdale Senior Living Inc. (BKD - Free Report) recently announced that its March 2024 weighted average occupancy grew 180 basis points from the year-ago level to 77.9%. With a first-quarter 2024 weighted average occupancy level of 77.9%, up 160 basis points from the year-ago period, it is evident that the company has had a promising start to the year, similar to the previous year.
Brookdale Senior Living has witnessed 29 straight months of year-over-year increases in weighted average occupancy. This indicates the company's ongoing improvement in occupancy rates, which is expected to result in increased resident fee revenues. This positive momentum is anticipated to persist in the future and contribute to the company's overall performance.
BKD’s 2023 resident fee revenues witnessed 10.5% year-over-year growth to almost $2.9 billion. Its RevPAR (revenue per available unit) and Adjusted EBITDA grew 11.3% and 39.1% year-over-year, respectively, last year. According to the company’s earlier guidance, first quarter 2024 RevPAR year-over-year growth was expected within 6.25% - 6.75%. Also, adjusted EBITDA was expected to be within the $90-$95 million range. For the first quarter of 2024, the company expects both RevPAR and Adjusted EBITDA to be in the top half of their respective guided ranges.
The RevPAR and occupancy growth are likely to have boosted its results. The Zacks Consensus Estimate for first-quarter 2024 bottom line signals a 15% improvement from the year-ago figure. However, the first quarter weighted average occupancy level of 77.9% signals a 50 basis points decline on a quarter-over-quarter basis. The March weighted average occupancy level remained flat sequentially.
The continued increased overall occupancy levels are expected to bring higher maintenance, food costs and labor expenses for BKD amid the ongoing inflationary pressures, which can weigh on the margins. Also, the change in lease classification is expected to have an unfavorable impact on its profit levels. It is expected to incur an expense impact of around $2 million from the January winter storms.
Notably, it beat earnings estimates in two of the last four quarters and missed on the other occasions, with an average negative surprise of 21.6%. This is depicted in the figure below.
Brookdale Senior Living Inc. Price and EPS Surprise
The Zacks Consensus Estimate for Universal Health Services’ 2024 bottom line suggests 27% year-over-year growth. UHS has witnessed two upward estimate revisions over the past 30 days against no movement in the opposite direction. It beat earnings estimates in all the last four quarters, with an average surprise of 5.9%.
The Zacks Consensus Estimate for Cigna’s full-year 2024 earnings indicates a 13% year-over-year increase. CI beat earnings estimates in each of the past four quarters, with an average surprise of 2.9%. The consensus mark for revenues suggests 20.4% growth from the year-ago period.
The Zacks Consensus Estimate for Health Catalyst’s 2024 full-year earnings implies a 120% increase from the year-ago reported figure. HCAT beat earnings estimates in each of the last four quarters, with an average surprise of 247.9%. The consensus mark for its current-year revenues is pegged at $308.2 million, which indicates a 4.2% year-over-year increase.
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Brookdale Senior (BKD) Sees Y/Y Increase in Q1 Occupancy Levels
Brookdale Senior Living Inc. (BKD - Free Report) recently announced that its March 2024 weighted average occupancy grew 180 basis points from the year-ago level to 77.9%. With a first-quarter 2024 weighted average occupancy level of 77.9%, up 160 basis points from the year-ago period, it is evident that the company has had a promising start to the year, similar to the previous year.
Brookdale Senior Living has witnessed 29 straight months of year-over-year increases in weighted average occupancy. This indicates the company's ongoing improvement in occupancy rates, which is expected to result in increased resident fee revenues. This positive momentum is anticipated to persist in the future and contribute to the company's overall performance.
BKD’s 2023 resident fee revenues witnessed 10.5% year-over-year growth to almost $2.9 billion. Its RevPAR (revenue per available unit) and Adjusted EBITDA grew 11.3% and 39.1% year-over-year, respectively, last year. According to the company’s earlier guidance, first quarter 2024 RevPAR year-over-year growth was expected within 6.25% - 6.75%. Also, adjusted EBITDA was expected to be within the $90-$95 million range. For the first quarter of 2024, the company expects both RevPAR and Adjusted EBITDA to be in the top half of their respective guided ranges.
The RevPAR and occupancy growth are likely to have boosted its results. The Zacks Consensus Estimate for first-quarter 2024 bottom line signals a 15% improvement from the year-ago figure. However, the first quarter weighted average occupancy level of 77.9% signals a 50 basis points decline on a quarter-over-quarter basis. The March weighted average occupancy level remained flat sequentially.
The continued increased overall occupancy levels are expected to bring higher maintenance, food costs and labor expenses for BKD amid the ongoing inflationary pressures, which can weigh on the margins. Also, the change in lease classification is expected to have an unfavorable impact on its profit levels. It is expected to incur an expense impact of around $2 million from the January winter storms.
Notably, it beat earnings estimates in two of the last four quarters and missed on the other occasions, with an average negative surprise of 21.6%. This is depicted in the figure below.
Brookdale Senior Living Inc. Price and EPS Surprise
Brookdale Senior Living Inc. price-eps-surprise | Brookdale Senior Living Inc. Quote
Zacks Rank & Stocks to Consider
Brookdale Senior Living currently carries a Zacks Rank #5 (Strong Sell).
Investors interested in the broader medical space may look at some better-ranked players like Universal Health Services, Inc. (UHS - Free Report) , The Cigna Group (CI - Free Report) and Health Catalyst, Inc. (HCAT - 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 Universal Health Services’ 2024 bottom line suggests 27% year-over-year growth. UHS has witnessed two upward estimate revisions over the past 30 days against no movement in the opposite direction. It beat earnings estimates in all the last four quarters, with an average surprise of 5.9%.
The Zacks Consensus Estimate for Cigna’s full-year 2024 earnings indicates a 13% year-over-year increase. CI beat earnings estimates in each of the past four quarters, with an average surprise of 2.9%. The consensus mark for revenues suggests 20.4% growth from the year-ago period.
The Zacks Consensus Estimate for Health Catalyst’s 2024 full-year earnings implies a 120% increase from the year-ago reported figure. HCAT beat earnings estimates in each of the last four quarters, with an average surprise of 247.9%. The consensus mark for its current-year revenues is pegged at $308.2 million, which indicates a 4.2% year-over-year increase.