NEW YORK (TheStreet) -- Shares of Brookdale Senior Living (BKD) were down 18.71% to $11.73 on heavy trading volume late Tuesday morning after reporting 2016 third-quarter financial results that missed analysts' estimates.
Before the market open, the Brentwood, TN-based operator of senior residences reported a loss of 28 cents per share, while analysts were looking for a loss of 10 cents per share.
Revenue of $1.25 billion was slightly below consensus estimates of $1.26 billion.
For the full year, Brookdale now expects to report revenue from senior housing and ancillary services between $4.15 billion and $4.20 billion, down from between $4.20 billion and $4.30 billion.
The company now expects adjusted EBITDA of $818 million to $828 million for the year, down from $870 million to $890 million. The FactSet consensus is for $858 million in adjusted EBITDA.
Additionally, Brookdale has agreed to pay $170 million for a 15% stake in a joint venture with Blackstone (BX) that will acquire a portfolio of 64 companies currently leased to Brookdale by HCP (HCP). Blackstone will purchase the units for $1.125 billion, after which the company will contribute the portfolio to the joint venture.
About 13.73 million shares of Brookdale have been traded so far today, well above the company's average trading volume of roughly 2.44 million shares a day.
Separately, TheStreet Ratings team rates the stock as a "hold" with a ratings score of C-.
Brookdale's strengths such as its increase in net income, revenue growth and good cash flow from operations are countered by weaknesses including generally higher debt management risk, disappointing return on equity and a generally disappointing performance in the stock itself.
You can view the full analysis from the report here: BKD
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.