Brookdale's (BKD) November 2023 Weighted Average Occupancy Up
Brookdale Senior Living Inc. BKD recently announced that its November weighted average occupancy improved 140 basis points (bps) from the year-ago level to 78.4%. However, this indicates a 20-bps decline from the October level.
The company is witnessing a favorable year in terms of occupancy rate, with the first nine-month weighted average occupancy level rising 200 bps. For the third quarter, the metric rose to 77.6% from 76.4% a year ago. The company expects growth in occupancy and retention to result in additional growth in its margins.
BKD experienced year-over-year RevPAR growth of 11.8% during the first nine months of 2023, contributing positively to its total revenues. Fourth-quarter RevPAR growth is expected to lie in the range of 9.5-10%. Additionally, it expects the adjusted EBITDA in the range of $77-$82 million.
BKD has witnessed 25 straight months of year-over-year increase in weighted average occupancy. This implies the company’s continuously improving occupancy levels, which is expected to result in higher resident fee revenues. In the first nine months of 2023, resident fee revenues increased 11.1% year over year. The momentum is likely to continue in the future and drive its results.
The Zacks Consensus Estimate for fourth-quarter 2023 bottom line is pegged at a loss of 19 cents per share. Nevertheless, the estimate for 2023 stands at a loss of 63 cents per share, indicating an improvement of 49.6% from the year-ago loss of $1.25 per share.
BKD aims 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 additional revenues, according to its expectations.
Price Performance
Brookdale shares have surged 100.4% in the year-to-date period compared with the industry’s rise of 20.3%.
Image Source: Zacks Investment Research
Zacks Rank & Stocks to Consider
The company currently carries a Zacks Rank #4 (Sell).
Some better-ranked stocks in the broader Medical space are Centene Corporation CNC, Lyra Therapeutics, Inc. LYRA and Atai Life Sciences N.V. ATAI. Each of these companies presently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Centene Corporation’s 2023 earnings indicates a 15.2% year-over-year increase to $6.66 per share. It has witnessed one upward estimate revision over the past 60 days against no movement in the opposite direction. The consensus mark for CNC’s 2023 revenues indicates 4.4% growth from a year ago. CNC beat earnings estimates in two of the last four quarters and missed twice, the average surprise being 5.6%.
The Zacks Consensus Estimate for Lyra Therapeutics’ 2023 bottom line has witnessed one upward estimate revision against none in the opposite direction, over the past 30 days. It beat earnings estimates in three of the last four quarters, missing once, with the average surprise being 8.8%.
The Zacks Consensus Estimate for Atai Life Sciences’ current-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, the average surprise being 3.2%.
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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
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