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Brookdale Shares Down 4.9% Despite Q1 Earnings Meeting Estimates
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Brookdale Senior Living Inc.’s (BKD - Free Report) shares have declined 4.9% since the company reported first-quarter 2025 results on May 6. Despite benefiting from improved resident fees, increased revenue per occupied unit (RevPOR) and occupancy gains, the quarterly results were hurt by headwinds stemming from rising facility operating expenses, elevated general and administrative costs and declined interest income.
BKD incurred a first-quarter loss of 11 cents per share, in line with the Zacks Consensus Estimate but narrower than the prior-year quarter’s loss of 13 cents.
Total revenues and other operating income grew 4% year over year to $813.9 million due to higher resident and management fee revenues. However, the company missed the Zacks Consensus Estimate by 0.8%.
Brookdale Senior Living Inc. Price, Consensus and EPS Surprise
Resident fees were $777.5 million, which improved 4.5% year over year but came lower than the Zacks Consensus Estimate of $781.3 million. The growth was attributed to improved RevPOR and weighted average occupancy.
Management fees rose 0.1% year over year to $2.6 million, but missed the consensus mark of $2.7 million.
RevPOR advanced 3% year over year in the first quarter as a result of annual rate increases. Weighted average occupancy improved 140 basis points year over year to 79.3%. Revenue per available unit (RevPAR) increased 4.9% year over year. Facility operating expenses totaled $557 million, up 2.7% year over year due to an increase in the wage rate and utilities expenses.
General and administrative costs escalated 4.7% year over year to $47.9 million.
Interest income of $3.6 million decreased 23.7% year over year. Brookdale incurred a net loss of $65 million, wider than the year-ago quarter’s loss of $29.6 million. The increased loss resulted from the increase in facility operating expenses, interest expenses and extinguishment of a financing obligation.
Adjusted EBITDA rose 27.2% year over year to $124.1 million. (Find the latest earnings estimates and surprises on Zacks Earnings Calendar.)
Brookdale’s Financial Update (As of March 31, 2025)
Brookdale exited the first quarter with cash and cash equivalents of $239.7 million, which declined from $308.9 million at the 2024-end level.
Total assets of $6.2 billion decreased from $6.3 billion at 2024-end.
Long-term debt, less of the current portion, amounted to $4.2 billion, up from $4 billion as of Dec. 31, 2024. The current portion of long-term debt amounted to $64.1 million.
Total equity of $148.1 million dropped from the 2024-end level of $213.9 million.
BKD generated $23.4 million of net cash from operations against net cash used in operations of $1.1 million in the prior year. Adjusted free cash inflow of $3.8 million compares favorably to the prior-year quarter’s outflow of $26.3 million.
BKD’s 2025 View
Management now estimates RevPAR to witness year-over-year growth in the range of 5%-5.75%, up from the previously expected range of 4.75%-5.75%. It now projects adjusted EBITDA to be in the range of $440-$450 million, up from the previously projected range of $430-$445 million.
The company continues to estimate non-development capital expenditures, net of anticipated lessor reimbursements and property and casualty insurance proceeds, within $175-$180 million in 2025. It estimates to deliver positive adjusted free cash flow within $30-$50 million in 2025.
The Zacks Consensus Estimate for Encompass Health’s current-year earnings of $5.01 per share has witnessed eight upward revisions in the past 30 days against none in the opposite direction. Encompass Health beat earnings estimates in each of the trailing four quarters, with the average surprise being 12.3%. The consensus estimate for current-year revenues is pegged at $5.9 billion, calling for 9.5% year-over-year growth.
The Zacks Consensus Estimate for GeneDx Holdings’ current-year earnings of $1.09 per share has witnessed one upward revision in the past 30 days against no movement in the opposite direction. GeneDx Holdings beat earnings estimates in each of the trailing four quarters, with the average surprise being 145.8%. The consensus estimate for current-year revenues is pegged at $374.1 billion, suggesting 22.5% year-over-year growth.
The Zacks Consensus Estimate for Centene’s current-year earnings is pegged at $7.27 per share. It has witnessed two upward revisions in the past 30 days against none in the opposite direction. Centene beat earnings estimates in three of the trailing four quarters and missed once, with the average surprise being 25.5%. The consensus estimate for current-year revenues is pegged at $179.6 billion, implying 10.2% year-over-year growth.
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Brookdale Shares Down 4.9% Despite Q1 Earnings Meeting Estimates
Brookdale Senior Living Inc.’s (BKD - Free Report) shares have declined 4.9% since the company reported first-quarter 2025 results on May 6. Despite benefiting from improved resident fees, increased revenue per occupied unit (RevPOR) and occupancy gains, the quarterly results were hurt by headwinds stemming from rising facility operating expenses, elevated general and administrative costs and declined interest income.
BKD incurred a first-quarter loss of 11 cents per share, in line with the Zacks Consensus Estimate but narrower than the prior-year quarter’s loss of 13 cents.
Total revenues and other operating income grew 4% year over year to $813.9 million due to higher resident and management fee revenues. However, the company missed the Zacks Consensus Estimate by 0.8%.
Brookdale Senior Living Inc. Price, Consensus and EPS Surprise
Brookdale Senior Living Inc. price-consensus-eps-surprise-chart | Brookdale Senior Living Inc. Quote
BKD’s Q1 Performance
Resident fees were $777.5 million, which improved 4.5% year over year but came lower than the Zacks Consensus Estimate of $781.3 million. The growth was attributed to improved RevPOR and weighted average occupancy.
Management fees rose 0.1% year over year to $2.6 million, but missed the consensus mark of $2.7 million.
RevPOR advanced 3% year over year in the first quarter as a result of annual rate increases. Weighted average occupancy improved 140 basis points year over year to 79.3%. Revenue per available unit (RevPAR) increased 4.9% year over year. Facility operating expenses totaled $557 million, up 2.7% year over year due to an increase in the wage rate and utilities expenses.
General and administrative costs escalated 4.7% year over year to $47.9 million.
Interest income of $3.6 million decreased 23.7% year over year. Brookdale incurred a net loss of $65 million, wider than the year-ago quarter’s loss of $29.6 million. The increased loss resulted from the increase in facility operating expenses, interest expenses and extinguishment of a financing obligation.
Adjusted EBITDA rose 27.2% year over year to $124.1 million. (Find the latest earnings estimates and surprises on Zacks Earnings Calendar.)
Brookdale’s Financial Update (As of March 31, 2025)
Brookdale exited the first quarter with cash and cash equivalents of $239.7 million, which declined from $308.9 million at the 2024-end level.
Total assets of $6.2 billion decreased from $6.3 billion at 2024-end.
Long-term debt, less of the current portion, amounted to $4.2 billion, up from $4 billion as of Dec. 31, 2024. The current portion of long-term debt amounted to $64.1 million.
Total equity of $148.1 million dropped from the 2024-end level of $213.9 million.
BKD generated $23.4 million of net cash from operations against net cash used in operations of $1.1 million in the prior year. Adjusted free cash inflow of $3.8 million compares favorably to the prior-year quarter’s outflow of $26.3 million.
BKD’s 2025 View
Management now estimates RevPAR to witness year-over-year growth in the range of 5%-5.75%, up from the previously expected range of 4.75%-5.75%. It now projects adjusted EBITDA to be in the range of $440-$450 million, up from the previously projected range of $430-$445 million.
The company continues to estimate non-development capital expenditures, net of anticipated lessor reimbursements and property and casualty insurance proceeds, within $175-$180 million in 2025. It estimates to deliver positive adjusted free cash flow within $30-$50 million in 2025.
BKD’s Zacks Rank & Key Picks
BKD currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader medical space are Encompass Health Corporation (EHC - Free Report) and GeneDx Holdings Corp (WGS - Free Report) , each sporting a Zacks Rank #1 (Strong Buy). Another stock, Centene Corporation (CNC - Free Report) , carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Encompass Health’s current-year earnings of $5.01 per share has witnessed eight upward revisions in the past 30 days against none in the opposite direction. Encompass Health beat earnings estimates in each of the trailing four quarters, with the average surprise being 12.3%. The consensus estimate for current-year revenues is pegged at $5.9 billion, calling for 9.5% year-over-year growth.
The Zacks Consensus Estimate for GeneDx Holdings’ current-year earnings of $1.09 per share has witnessed one upward revision in the past 30 days against no movement in the opposite direction. GeneDx Holdings beat earnings estimates in each of the trailing four quarters, with the average surprise being 145.8%. The consensus estimate for current-year revenues is pegged at $374.1 billion, suggesting 22.5% year-over-year growth.
The Zacks Consensus Estimate for Centene’s current-year earnings is pegged at $7.27 per share. It has witnessed two upward revisions in the past 30 days against none in the opposite direction. Centene beat earnings estimates in three of the trailing four quarters and missed once, with the average surprise being 25.5%. The consensus estimate for current-year revenues is pegged at $179.6 billion, implying 10.2% year-over-year growth.