Brookdale Senior Living, Inc. Third Quarter Earnings Sneak Peek

Brookdale Senior Living, Inc. (NYSE:BKD) will unveil its latest earnings on Thursday, November 1, 2012. Brookdale Senior Living is an operator of senior living communities in the United States. It operates in four business segments: retirement centers, assisted living communities, continuing care retirement communities, and management services.

Brookdale Senior Living, Inc. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for a loss of 3 cents per share, a narrower loss from the year-earlier quarter net loss of 9 cents. During the past three months, the average estimate has moved down from breaking even. Between one and three months ago, the average estimate moved down. It also has dropped from a loss of 2 cents during the last month.

Past Earnings Performance: Last quarter, the company fell short of estimates by 8 cents, coming in at net loss of 8 cents a share versus the estimate of 0 cents a share. It was the fourth straight quarter of missing estimates.

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Stock Price Performance: Between August 2, 2012 and October 26, 2012, the stock price rose $7.48 (46.7%), from $16.03 to $23.51. The stock price saw one of its best stretches over the last year between December 19, 2011 and December 30, 2011, when shares rose for nine straight days, increasing 21.5% (+$3.08) over that span. It saw one of its worst periods between July 2, 2012 and July 12, 2012 when shares fell for eight straight days, dropping 11.7% (-$2.10) over that span.

A Look Back: In the second quarter, the company’s loss narrowed to a loss of $18.8 million (15 cents a share) from a loss of $34 million (28 cents) a year earlier, but missed analyst expectations. Revenue rose 18.4% to $690.8 million from $583.3 million.

Wall St. Revenue Expectations: On average, analysts predict $691.9 million in revenue this quarter, a rise of 12.4% from the year-ago quarter. Analysts are forecasting total revenue of $2.76 billion for the year, a rise of 12.2% from last year’s revenue of $2.46 billion.

Key Stats:

With double-digit revenue growth the past four quarters, this earnings release is a chance to keep that positive trend going. The company has averaged year-over-year revenue growth of 17.1% over the last four quarters.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 0.3 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, a ratio less than one could indicate a company may have difficulty meeting current obligations. The company regressed in this liquidity measure from 0.43 in the first quarter to the last quarter driven in part by an increase in liabilities. Current liabilities increased 44% to $990.1 million while assets decreased 1.7% to $292.6 million.

Analyst Ratings: With six analysts rating the stock a buy, none rating it a sell and one rating the stock a hold, there are indications of a bullish stance by analysts.

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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)

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