Brookdale (BKD) Sees Growth in December 2023 Occupancy Volumes
Brookdale Senior Living Inc. BKD recently announced that its December weighted average occupancy climbed 130 basis points (bps) from the year-ago level to 78.3%. However, this indicates a 10-bps decline from the November level.
In the fourth quarter of 2023, BKD observed a weighted average occupancy of 78.4%, up from 77.1% a year ago. The year began on a positive note, witnessing a 240-bps increase in the first-half weighted average occupancy. For the third quarter, the metric rose to 77.6% from 76.4% a year ago. At the fourth-quarter end, it had the capacity to serve around 59,000 residents in 41 states.
BKD has experienced 26 straight months of year-over-year growth in weighted average occupancy, showcasing a consistent upward trend in occupancy levels. This positive trajectory is anticipated to contribute to increased resident fee revenues. In the initial nine months of 2023, resident fee revenues saw a noteworthy 11.1% year-over-year rise. The momentum is expected to persist, providing further support to the company's overall results.
For the fourth quarter of 2023, it earlier projected revenue per available unit (RevPAR) growth to fall in the range of 9.5-10%. The company experienced year-over-year RevPAR growth of 10.7% during the third quarter of 2023, contributing positively to its overall revenues. Additionally, it expected the adjusted EBITDA in the range of $77 million-$82 million in the fourth quarter.
The Zacks Consensus Estimate for the fourth-quarter 2023 bottom line is pegged at a loss of 19 cents per share, which remained stable over the past few weeks. However, the estimate for the full year 2023 indicates an improvement of 49.6% from the year-ago loss of $1.25 per share.
The company is poised for a substantial revenue growth opportunity. BKD has witnessed a notable improvement in weighted average occupancy from the pandemic's low of 69.6% in the first quarter of 2021. Its objective is to restore occupancy and return to its pre-pandemic levels (84.5% observed in the fourth quarter of 2019). Achieving this target is projected to yield at least $250 million in incremental revenues, according to their expectations.
Price Performance
Brookdale shares have surged 94.4% in the past year compared with the industry’s rise of 26.3%.
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Zacks Rank & Other Stocks to Consider
The company currently carries a Zacks Rank #2 (Buy). Some other top-ranked stocks in the broader Medical space are Atai Life Sciences N.V. ATAI, Centene Corporation CNC and Motus GI Holdings, Inc. MOTS, each carrying a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Atai Life Sciences’ 2023 full-year earnings implies a 68.4% improvement from the year-ago reported figure. It has witnessed four upward estimate revisions over the past 60 days against no movement in the opposite direction. ATAI beat earnings estimates in two of the last four quarters, met once and missed on one occasion, with an average surprise of 3.2%.
The Zacks Consensus Estimate for Centene’s 2023 full-year earnings is pegged at $6.65 per share, implying a 15.1% increase from the year-ago reported figure. The consensus mark for its current-year revenues is pegged at $150.8 billion, calling for 4.4% year-over-year growth. CNC beat earnings estimates in two of the last four quarters and missed twice, with an average surprise of 5.6%.
The Zacks Consensus Estimate for Motus GI’s 2023 bottom line suggests a 67.2% year-over-year improvement. MOTS has witnessed one upward estimate revision 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 40.2%.
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Brookdale Senior Living Inc. (BKD) : Free Stock Analysis Report
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