Brookdale Senior Living Earnings: Here’s Why the Stock is Rising Now

Brookdale Senior Living Inc. (NYSE:BKD) had a loss and missed Wall Street’s expectations, BUT beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 0.07%.

Brookdale Senior Living Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased to $-0.04 in the quarter versus EPS of $-0.15 in the year-earlier quarter.

Revenue: Rose 3.11% to $712.27 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Brookdale Senior Living Inc. reported adjusted EPS loss of $0.04 per share. By that measure, the company missed the mean analyst estimate of $0.01. It beat the average revenue estimate of $700.85 million.

Quoting Management: Andy Smith, Brookdale’s CEO, said, “We produced solid second quarter results. Driving top-line revenue growth, while managing expense growth, resulted in CFFO growth of 8% for the quarter and 13% year to date. Occupancy was up 60 basis points over last year’s second quarter and pricing growth for our senior housing business, excluding skilled nursing, was 2.7% versus the prior year period. Bolstered by the improving housing market, we had a terrific quarter in our entry fee CCRCs with a record number of second quarter sales. Our branding initiative is off to a strong start and we are encouraged by the initial results of our innovative marketing work. Our second quarter results, like those for the first quarter, demonstrate positive momentum of a slowly strengthening economic environment that enables us to increase our full year CFFO guidance.”

Key Stats (on next page)…

Revenue decreased 0% from $712.27 million in the previous quarter. EPS decreased to $-0.04 in the quarter versus EPS of $0.03 in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a loss of $0 to a profit $0.01. For the current year, the average estimate has moved up from a profit of $0.02 to a profit of $0.06 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)

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