In This Article:
Brookdale Senior Living Inc. (NYSE:BKD) missed earnings with its latest yearly results, disappointing overly-optimistic forecasters. It was a pretty negative result overall, with revenues of US$3.0b missing analyst predictions by 4.6%. Worse, the business reported a statutory loss of US$0.89 per share, much larger than the analysts had forecast prior to the result. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
See our latest analysis for Brookdale Senior Living
After the latest results, the four analysts covering Brookdale Senior Living are now predicting revenues of US$3.21b in 2025. If met, this would reflect a reasonable 7.6% improvement in revenue compared to the last 12 months. Losses are predicted to fall substantially, shrinking 44% to US$0.57. Before this latest report, the consensus had been expecting revenues of US$3.26b and US$0.63 per share in losses. It looks like there's been a modest increase in sentiment in the recent updates, with the analysts becoming a bit more optimistic in their predictions for losses per share, even though the revenue numbers were unchanged.
There's been no major changes to the consensus price target of US$7.38, suggesting that reduced loss estimates are not enough to have a long-term positive impact on the stock's valuation. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. The most optimistic Brookdale Senior Living analyst has a price target of US$8.00 per share, while the most pessimistic values it at US$5.50. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.
Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. One thing stands out from these estimates, which is that Brookdale Senior Living is forecast to grow faster in the future than it has in the past, with revenues expected to display 7.6% annualised growth until the end of 2025. If achieved, this would be a much better result than the 2.5% annual decline over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenue grow 7.2% per year. So while Brookdale Senior Living's revenues are expected to improve, it seems that it is expected to grow at about the same rate as the overall industry.