Morgan Keegan Gives Earnings Preview On Brookdale Senior Living

Brookdale Senior Living BKD will report first quarter earnings before the open next Tuesday, May 10, followed by a conference call at 10 AM EDT to discuss the results. Morgan Keegan's cash from facility operations estimate is $0.56 versus $0.46 in the prior year period. Since this metric is not tracked by First Call, Morgan Keegan does not know where it stands relative to consensus. Morgan Keegan lowered its Q1 estimate from its prior $0.60, as it assumed better-than-average occupancy retention in what is seasonally the toughest quarter for move-outs of the year. First quarter results also may have been adversely affected by extreme weather. However, there is no change to its full-year CFFO estimates. Morgan Keegan believes that Brookdale is positioned to improve operations across a portfolio that grew rapidly via acquisition. It believes that the weak economy is negatively impacting occupancy, as families defer move-ins of potential residents. This trend is being countered by tight expense controls and improving pricing. Morgan Keegan has a $34 PT and Outperform rating on BKD BKD closed Tuesday at $26.20