What occurred

Share of Brookdale Senior Residing (BKD 32.88%) had been skyrocketing 29.5% as of 11:04 a.m. ET on Tuesday. The large acquire got here after the operator of senior dwelling communities gave a surprisingly optimistic replace to its first-quarter expectations based mostly on preliminary, unaudited outcomes.

Brookdale mentioned that it now expects income per out there room (RevPAR) will improve by round 12.9% within the first quarter of 2023. Its earlier steering was for RevPAR progress of between 11% and 12%.

The corporate initiatives that first-quarter adjusted earnings earlier than curiosity, taxes, depreciation, and amortization (EBITDA) might be “meaningfully above the beforehand issued steering vary” of $70 million to $75 million. Brookdale said that whole income and different working revenue needs to be larger than earlier expectations as effectively. The higher-than-expected RevPAR progress is the primary driving issue behind this more-positive outlook.

The corporate additionally reported weighted common occupancy of 76.1% in March. This was effectively above the 73.6% occupancy within the prior-year interval. It marked Brookdale’s seventeenth consecutive month of year-over-year weighted common occupancy progress.

So what

Buyers had been justifiably happy with Brookdale’s sneak peek at its first-quarter outcomes. The advance seems to indicate that the corporate has largely moved previous the headwinds associated to the pandemic.

The excellent news should not have come as a complete shock, although. CEO Lucinda Baier famous earlier this 12 months that the corporate noticed “stronger-than-expected move-in outcomes” in January.

Now what

Brookdale is scheduled to announce its official first-quarter outcomes after the market closes on Could 8. The corporate plans to carry its quarterly convention name the next morning.