Brookdale Senior Living Preliminary Results, Outlook Disappoint

Shares of Brookdale Senior Living, Inc. BKD fell 11 percent Monday as the company's guidance in a preliminary Q4 earnings release disappointed investors.

The company expected Q4 revenue of $1.253 billion with Cash From Facility Operations (CFFO) of $0.53 per share, below expectations of $0.64.

The company also lowered FY 2015 CFFO from a range of $2.95-$3.10 to $2.60-$2.75. Analysts has expected $3.00.

Andy Smith, Brookdale's CEO, said, "Brookdale's preliminary fourth quarter CFFO was impacted by a combination of lower than expected occupancy and approximately $11 million, or $0.06 per share, of certain higher-than-anticipated insurance reserve adjustments. We are pleased, however, that the timing of our integration of Emeritus is proceeding more quickly than planned. We anticipate the business will be on a common systems and infrastructure platform by mid-2015."

The company will issue it Q4 earnings report on February 4, 2015, after the market close.

Brookdale Senior Living recently traded at $33.05, down 9.9 percent.