February 22, 2023

Why Brookdale Senior Living Stock Crushed the Market Today

© Provided by The Motley Fool
Why Brookdale Senior Living Stock Crushed the Market Today

What happened

Specialized healthcare company Brookdale Senior Living (NYSE: BKD) was quite the stock market star on Wednesday. Its share price popped by more than 10% on the day, following the release of its latest set of quarterly earnings. That double-digit rise was in vivid contrast to the 0.2% decline of the S&P 500 index.

Load Error

So what

For its fourth quarter of 2022, Brookdale earned nearly $700.6 million in revenue, which was 9% higher on a year-over-year basis. On the bottom line, the assisted-living healthcare company managed to narrow its net loss considerably; this came in at a bit more than $25.6 million ($0.13 per share), against fourth quarter 2021’s $81.7 million deficit.

Both headline figures topped analyst estimates, with the net loss result doing so spectacularly. On average, prognosticators following Brookdale stock were modeling slightly under $696 million for revenue and a far deeper net loss of $0.41 per share.

In its earnngs release, Brookdale chalked up its improvements to higher resident fees, plus higher occupancy and revenue per available room (RevPAR; a widely used metric in the hospitality industry).

Now what

Brookdale expects its positive momentum to continue. It quoted CEO Cindy Baier as saying that “we are optimistic that our recovery will continue in 2023 and in January have seen stronger than expected move-in results.”

The company proffered rather limited guidance to illustrate this bullishness. It believes RevPAR will rise by 11% to 12% in 2023 over the previous year, with non-GAAP (adjusted) earnings before interest, taxes, depreciation and amortization landing in the black at $70 million to $75 million.

SPONSORED:

10 stocks we like better than Brookdale Senior Living

When our award-winning analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*

They just revealed what they believe are the ten best stocks for investors to buy right now… and Brookdale Senior Living wasn’t one of them! That’s right — they think these 10 stocks are even better buys.

See the 10 stocks

*Stock Advisor returns as of February 8, 2023

Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Continue Reading

tradersville.net is not an investment advisor and is not registered with the U.S. Securities and Exchange Commission or the Financial Industry Regulatory Authority. Further, owners, employees, agents or representatives of tradersville.net are not acting as investment advisors and might not be registered with the U.S. Securities and Exchange Commission or the Financial Industry Regulatory.

The sender of this email makes no representations or warranties concerning the products, practices or procedures of any company or entity mentioned or recommended in this email, and makes no representations or warranties concerning said company or entity’s compliance with applicable laws and regulations, including, but not limited to, regulations promulgated by the SEC or the CFTC. The sender of this email may receive a portion of the proceeds from the sale of any products or services offered by a company or entity mentioned or recommended in this email. The recipient of this email assumes responsibility for conducting its own due diligence on the aforementioned company or entity and assumes full responsibility, and releases the sender from liability, for any purchase or order made from any company or entity mentioned or recommended in this email.

The content on any of tradersville.net websites, products or communication is for educational purposes only. Nothing in its products, services, or communications shall be construed as a solicitation and/or recommendation to buy or sell a security. Trading stocks, options and other securities involves risk. The risk of loss in trading securities can be substantial. The risk involved with trading stocks, options and other securities is not suitable for all investors. Prior to buying or selling an option, an investor must evaluate his/her own personal financial situation and consider all relevant risk factors. See: Characteristics and Risks of Standardized Options.

The information presented in this site is not intended to be used as the sole basis of any investment decisions, nor should it be construed as advice designed to meet the investment needs of any particular investor. Nothing in our research constitutes legal, accounting or tax advice or individually tailored investment advice. Our research is prepared for general circulation and has been prepared without regard to the individual financial circumstances and objectives of persons who receive or obtain access to it. Our research is based on sources that we believe to be reliable. However, we do not make any representation or warranty, expressed or implied, as to the accuracy of our research, the completeness, or correctness or make any guarantee or other promise as to any results that may be obtained from using our research. To the maximum extent permitted by law, neither we, any of our affiliates, nor any other person, shall have any liability whatsoever to any person for any loss or expense, whether direct, indirect, consequential, incidental or otherwise, arising from or relating in any way to any use of or reliance on our research or the information contained therein. Some discussions contain forward looking statements which are based on current expectations and differences can be expected. All of our research, including the estimates, opinions and information contained therein, reflects our judgment as of the publication or other dissemination date of the research and is subject to change without notice. Further, we expressly disclaim any responsibility to update such research. Investing involves substantial risk. Past performance is not a guarantee of future results, and a loss of original capital may occur. No one receiving or accessing our research should make any investment decision without first consulting his or her own personal financial advisor and conducting his or her own research and due diligence, including carefully reviewing any applicable prospectuses, press releases, reports and other public filings of the issuer of any securities being considered. None of the information presented should be construed as an offer to sell or buy any particular security. As always, use your best judgment when investing.

Disclaimer: Past performance is no guarantee of future performance. This product is for educational purposes only. Practical application of the products herein are at your own risk and tradersville.net, its partners, representatives and employees assume no responsibility or liability for any use or mis-use of the product. Please contact your financial advisor for specific financial advice tailored to your personal circumstances. Any trades shown are hypothetical example and do not represent actual trades. Actual results may differ. Nothing here in constitutes a recommendation respecting the particular security illustrated.