Brookdale's (BKD) August 2023 Occupancy & Move-in Volumes Rise
Brookdale Senior Living Inc. BKD recently announced that its August weighted average occupancy climbed 120 basis points (bps) from the year-ago level to 77.6%. This also indicates a 50-bps jump from the July level. The company has witnessed a favorable start this year, with the first-half weighted average occupancy level rising 240 bps.
In August alone, move-in volumes climbed to more than 2,200, reaching the highest point in the last half a decade. At the second-quarter end, it had the capacity to serve more than 60,000 residents in 41 states.
BKD has witnessed 22 straight months of year-over-year increases in weighted average occupancy. This highlights the company’s ongoing improvement in occupancy levels, which is expected to lead to higher resident fee revenues. In the first half of 2023, resident fee revenues increased 11.4% year over year. The momentum is likely to continue in the second half and buoy its results.
The company has a massive revenue opportunity ahead. BKD’s quarterly weighted average occupancy improved significantly from the pandemic low of 69.6% in first-quarter 2021 and it is trying to reach its pre-pandemic level of 84.5% (witnessed in 4Q19). Reaching that milestone will likely drive at least $295 million of incremental revenues, it expects.
The company’s RevPAR growth for the first half of 2023 was 12.2% year over year, which boosted the top line. For the third quarter, it expects RevPAR growth to be within 10-10.5%. It also expects adjusted EBITDA to be in the range of $73-$78 million.
The Zacks Consensus Estimate for 2023 bottom line is pegged at a loss of 62 cents per share. Nevertheless, the estimate indicates an improvement of 50.4% from the year-ago loss of $1.25 per share.
Price Performance
Brookdale shares have gained 43.6% in the year-to-date period compared with the industry’s rise of 3.9%.
Image Source: Zacks Investment Research
Zacks Rank & Stocks to Consider
The company currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the broader Medical space are Select Medical Holdings Corporation SEM, HCA Healthcare, Inc. HCA and Atai Life Sciences N.V. ATAI, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Select Medical’s 2023 earnings indicates a 56.9% year-over-year increase to $1.93 per share. It has witnessed one upward estimate revision over the past month against no movement in the opposite direction. The consensus mark for SEM’s 2023 revenues indicates 4.2% growth from a year ago.
The Zacks Consensus Estimate for HCA Healthcare’s 2023 bottom line suggests a 9.2% increase from the prior-year levels. HCA has witnessed one upward estimate revision in the past month against none in the opposite direction. It beat earnings estimates in three of the last four quarters and missed once, with the average surprise being 5.4%.
The Zacks Consensus Estimate for Atai Life Sciences’ current-year earnings implies a 16.3% improvement from the year-ago reported figure. It has witnessed four upward estimate revisions over the past month 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.
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Brookdale Senior Living Inc. (BKD) : Free Stock Analysis Report
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atai Life Sciences N.V. (ATAI) : Free Stock Analysis Report
