Taking a Look at:
Brookdale Senior Living
Whole Foods Market
Published by The Bull Market Report
May 8, 2016
Please Note: All earnings dates are subject to change. We urge you to confirm dates on a company’s investor relations (IR) website if an exact date is important to your investment or trading strategy.
Note to our valued subscribers: We have recently added a new feature entitled “Key Things To Watch”. Predicting earnings is a difficult task and is the reason why management supplies periodic guidance. Going beyond this, we focus on the key forces behind the mere numbers that drive stock prices. We sincerely hope you find this helpful; we always welcome your comments.
Earnings Previews – Week of May 9-13th 2016
BROOKDALE SENIOR LIVING (BKD: $18.13, down 2% - week)
Earnings Date: May 10, 4:15 PM ET
Consensus: 1Q2016
Revenues: $1.25 billion
EPS: $0.58
Year Ago Quarter Results
Revenues: $1.25 billion
EPS: $0.63
| EPS Trends | Current Qtr. March 2016 |
Next Qtr. June 2016 |
Current Year December 2016 |
Next Year December 2017 |
| Current Estimate | 0.58 | 0.61 | 2.50 | 2.75 |
| 90 Days Ago | 0.65 | 0.66 | 2.63 | 2.36 |
| Earnings History | March 2015 | June 2015 | September 2015 | December 2015 |
| EPS Actual | 0.63 | 0.60 | 0.59 | 0.58 |
Key Things To Watch: 1Q16 earnings forecasters may be looking for $0.58 versus $0.65 but lately Brookdale has produced some pleasant surprises. Comparisons will start to improve starting in 2Q16 with full year results expected to increase 4% to $2.50 and 10% next year to $2.75. Wall Street has yet to fully grasp Brookdale as only six analysts cover the company. However, five of these folks love the stock and have set price targets from $25-$40. We agree.
BMR TAKE: We think positive change is in the wind and present day stockholders stand to benefit generously. We aren’t alone in this assessment. In the past three months since the stock hit a low of $13.29, insiders have been buyers of the stock. The biggest single buyer is the company’s new COO, LaBeed Diab and the new CFO Cindy Baier. From the outset we acknowledged how hard it is to find leading companies in a demographically blessed sector where the stock offers this much upside. Brookdale Senior Living gets our vote.
WHOLE FOODS MARKET (WFM: $30, up 3% for the week)
Earnings Date: May 11, 4:30 PM ET
Consensus: 2Q2016
Revenues: $3.75 billion
EPS: $0.41
Year Ago Quarter Results
Revenues: $3.65 billion
EPS: $0.43
| EPS Trends | Current Qtr. March 2016 |
Next Qtr. June 2016 |
Current Year Sep 2016 |
Next Year September 2017 |
|
| Current Estimate | 0.41 | 0.40 | 1.55 | 1.61 | |
| 90 Days Ago | 0.41 | 0.42 | 1.53 | 1.61 | |
| Earnings History | March 2015 | June 2015 | September 2015 | December 2015 | |
| EPS Actual | 0.43 | 0.43 | 0.30 | 0.46 | |
Key Things To Watch: Wall Street is in a wait and see mode presently with 22 of 29 analysts with a hold rating on the stock. But then Wall Street only looks at short-term earnings, which are not that impressive at the moment. The bigger picture for investors is to look for signs that customer traffic in traditional stores is growing. Management guidance calls for a 3%-5% gain this year. This is the key number to watch for in 1Q16 results.
BMR TAKE: Whole Foods stands for the highest quality in Organic product, packaging, as well as merchandising and service. Competitors have not overlooked the huge consumer appeal and profitability created by Whole Foods. For the past year, these pressures have impacted the growth in same-store sales. Quality companies adjust to changing conditions and we regard Whole Food’s management in that category. Successful investors continuously find quality companies and invest when prices are depressed and where good value is available. Investing in Whole Foods Market now is where buyers are will look back in a few years and know they made a profitable decision.