Brookdale Senior Living Inc. (NYSE:BKD) Just Released Its Second-Quarter Earnings: Here's What Analysts Think

Shareholders might have noticed that Brookdale Senior Living Inc. (NYSE:BKD) filed its quarterly result this time last week. The early response was not positive, with shares down 5.3% to US$7.21 in the past week. Revenues were in line with expectations, at US$813m, while statutory losses ballooned to US$0.18 per share. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Brookdale Senior Living after the latest results.

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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 credible 5.2% improvement in revenue compared to the last 12 months. Losses are predicted to fall substantially, shrinking 22% to US$0.81. Before this latest report, the consensus had been expecting revenues of US$3.20b and US$0.73 per share in losses. So it's pretty clear the analysts have mixed opinions on Brookdale Senior Living even after this update; although they reconfirmed their revenue numbers, it came at the cost of a notable increase in per-share losses.

Check out our latest analysis for Brookdale Senior Living

As a result, there was no major change to the consensus price target of US$8.30, with the analysts implicitly confirming that the business looks to be performing in line with expectations, despite higher forecast losses. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. The most optimistic Brookdale Senior Living analyst has a price target of US$9.50 per share, while the most pessimistic values it at US$6.00. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. It's clear from the latest estimates that Brookdale Senior Living's rate of growth is expected to accelerate meaningfully, with the forecast 11% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 0.5% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 5.9% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Brookdale Senior Living to grow faster than the wider industry.

The Bottom Line

The most important thing to note is the forecast of increased losses next year, suggesting all may not be well at Brookdale Senior Living. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Brookdale Senior Living going out to 2027, and you can see them free on our platform here..

We don't want to rain on the parade too much, but we did also find 3 warning signs for Brookdale Senior Living that you need to be mindful of.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.