Seniors Housing Weekly Update - Third Quarter Earnings Wrap-Up
November 12, 2013
Third Quarter Earnings Wrap-Up
Did I speak too soon last week about the earnings season getting ugly after Capital Senior Living reported and its shares initially dropped 13%? We feared that Emeritus may have some bad news, but that bad news was released last September, and another shoe did not drop, so when Emeritus did come out with its earnings, investors pushed its share price up 13%. Brookdale followed with mostly solid results but not enough for a stampede to its shares. And Five Star Quality Care finally came out with its earnings after a two-week delay, only to tell investors they still can’t report earnings per share because of an accounting issue related to deferred taxes, a non-cash item. But don’t worry, the final resolution will result in higher previous GAAP earnings. The market’s reaction? Up 30 cents. Kindred Healthcare is still struggling between current performance and setting the stage to crush the competition down the road. Investors were not impressed but we still are. Finally, after the initial celebration of The Ensign Group’s decision to split into a REIT and an operating company, well, investors seem to need more convincing.