There's been a notable change in appetite for Brookdale Senior Living Inc. (NYSE:BKD) shares in the week since its quarterly report, with the stock down 12% to US$5.50. It was a pretty bad result overall; while revenues were in line with expectations at US$784m, statutory losses exploded to US$0.22 per share. 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. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
Check out our latest analysis for Brookdale Senior Living
Taking into account the latest results, the consensus forecast from Brookdale Senior Living's four analysts is for revenues of US$3.27b in 2025. This reflects a decent 11% improvement in revenue compared to the last 12 months. Losses are predicted to fall substantially, shrinking 43% to US$0.60. Before this latest report, the consensus had been expecting revenues of US$3.28b and US$0.52 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 noticeable increase in per-share losses.
As a result, there was no major change to the consensus price target of US$7.63, with the analysts implicitly confirming that the business looks to be performing in line with expectations, despite higher forecast losses. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. There are some variant perceptions on Brookdale Senior Living, with the most bullish analyst valuing it at US$9.00 and the most bearish at US$5.50 per share. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.
These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Brookdale Senior Living's past performance and to peers in the same industry. For example, we noticed that Brookdale Senior Living's rate of growth is expected to accelerate meaningfully, with revenues forecast to exhibit 8.4% growth to the end of 2025 on an annualised basis. That is well above its historical decline of 3.3% a year over the past five years. Compare this against analyst estimates for the broader industry, which suggest that (in aggregate) industry revenues are expected to grow 6.6% annually. So it looks like Brookdale Senior Living is expected to grow faster than its competitors, at least for a while.
The most important thing to take away is that the analysts increased their loss per share estimates for next year. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at US$7.63, with the latest estimates not enough to have an impact on their price targets.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Brookdale Senior Living going out to 2026, and you can see them free on our platform here.
That said, it's still necessary to consider the ever-present spectre of investment risk. We've identified 2 warning signs with Brookdale Senior Living , and understanding these should be part of your investment process.
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