Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Brookdale Scraps Earnings View Due To COVID-19 Uncertainty

By Zacks Investment ResearchStock MarketsMar 18, 2020 10:41PM ET
www.investing.com/analysis/brookdale-scraps-earnings-view-due-to-covid19-uncertainty-200517468
Brookdale Scraps Earnings View Due To COVID-19 Uncertainty
By Zacks Investment Research   |  Mar 18, 2020 10:41PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 

Brookdale Senior Living Inc. (NYSE:BKD) has withdrawn its previously provided full-year 2020 guidance, following the uncertainty that COVID-19 has cast on its earnings. The company had expected earnings between $510 million and $540 million for 2020, with free cash flow between $70 million and $90 million.

Another round of update regarding the company’s 2020 earnings guidance will be provided once the factors surrounding COVID-19 become clearer.

Brookdale Senior Living, the nation’s largest senior-living community operator, with more than 750 facilities in 45 states, has incurred and will continue to incur significant costs to address the pandemic, in the form of incremental supply costs and additional labor costs.

The company has also taken steps to preserve its liquidity. This involves drawing upon its revolving line of credit facility in mid-March, temporarily suspending repurchases under its existing share repurchase authorization. Also, the company has modified, delayed or canceled a number of elective capital expenditure projects for the time being. It had planned approximately $190 million of capital expenditures in 2020.

The company has also taken precautionary measures to protect its residents. This includes bringing into effect infectious disease prevention training for its employees, restrictive or limited visitation. It is also putting on hold new resident admissions in certain cases.

Year to date, shares of Brookdale Senior have lost 76% compared with its industry’s decline of 49.5%. Other stocks in the same space such as Ensign Group, Inc. (NASDAQ:ENSG) and Genesis Healthcare, Inc. (NYSE:GEN) have lost 35.9% and 34.2%, respectively, over the same time frame.

Nursing homes are racing up to tackle the coronavirus outbreak since older people are more vulnerable to infections. Security measures at this nursing home ramped up after Life Care Center in Washington reported 13 deaths related to coronavirus.

Meanwhile, the hospital sector has not escaped the onslaught of the coronavirus outbreak. Hospitals have been asked to put on hold their elective procedures in a bid to keep hospital beds available in case of potential surge in coronavirus-inflicted hospital admissions. Notably, this will dent their revenues.

Brookdale carries a Zacks Rank #2 (Buy). Another stock worth considering in the same space is Tenet Healthcare Corporation (NYSE:THC) . It carries the same Zacks Rank as Brookdale. The stock surpassed estimates in three of the trailing four quarters but missed the same in the remaining quarter, the positive surprise being 53.11%, on average.

Breakout Biotech Stocks with Triple-Digit Profit Potential

The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.

Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +50%, +83% and +164% in as little as 2 months. The stocks in this report could perform even better.

See these 7 breakthrough stocks now>>



Tenet Healthcare Corporation (THC): Free Stock Analysis Report

Brookdale Senior Living Inc. (BKD): Free Stock Analysis Report

Genesis Healthcare, Inc. (GEN): Free Stock Analysis Report

The Ensign Group, Inc. (ENSG): Free Stock Analysis Report

Original post
Brookdale Scraps Earnings View Due To COVID-19 Uncertainty
 

Related Articles

Gary Gordon
Betting The Farm On The Fed By Gary Gordon - Aug 05, 2021

According to an index by Goldman Sachs—an index that takes into account the value of the dollar as well as interest rates—U.S. financial conditions are easier than they have ever...

Brookdale Scraps Earnings View Due To COVID-19 Uncertainty

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email