Brookdale Senior Living Second Quarter Earnings Sneak Peek

Brookdale Senior Living, Inc. (NYSE:BKD) will unveil its latest earnings on Monday, August 6, 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 the company to break even after the company reported a loss of one cent per share in the year-earlier quarter. During the past three months, the average estimate has moved down from 2 cents. Between one and three months ago, the average estimate was unchanged. It has since dropped over the last month.

Past Earnings Performance: For the past three quarters, the company’s quarterly results have come in below analyst’s expectations. Last quarter, the company reported net loss of 5 cents per share versus a mean estimate of a loss of one cent per share.

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A Look Back: In the first quarter, the company’s loss narrowed to a loss of $10.3 million (9 cents a share) from a loss of $12.3 million (10 cents) a year earlier, but missed analyst expectations. Revenue rose 20% to $683.5 million from $569.4 million.

Wall St. Revenue Expectations: On average, analysts predict $648.3 million in revenue this quarter, a rise of 11.1% from the year-ago quarter. Analysts are forecasting total revenue of $2.7 billion for the year, a rise of 9.8% from last year’s revenue of $2.46 billion.

Stock Price Performance: Between May 4, 2012 and July 31, 2012, the stock price fell $1.92 (-10.4%), from $18.38 to $16.46. 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.

Key Stats:

On the top line, the company is looking to build on four-straight revenue increases heading into this earnings announcement. Revenue rose 6.3% in the second quarter of the last fiscal year, 10.3% in the third quarter of the last fiscal year and 19.7% in the fourth quarter of the last fiscal year before increasing again in the first quarter.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 0.43 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 0.45 in the fourth quarter of the last fiscal year to the last quarter driven in part by an increase in liabilities. Current liabilities increased 10.7% to $687.5 million while assets rose 5.9% to $297.5 million.

Analyst Ratings: With five 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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