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Pennant Group Q3 adjusted profit misses estimates; revenue slightly beats on home health, hospice growth

By Reuters News


Overview

  • U.S. home health and hospice provider's Q3 revenue rose 32%, slightly beating analyst expectations

  • Adjusted EPS for Q3 missed analyst expectations

  • Home health and hospice growth reflected acquisitions and higher same-agency admissions and census


Outlook

  • Pennant says Q3 results are consistent with its full-year guidance and put the company on track for a successful finish to the year

  • Company expects businesses acquired over the past two years to contribute positively over the long term


Result Drivers

  • HOME HEALTH AND HOSPICE GROWTH - Segment revenue rose 38.2%, supported by acquired operations and growth at same-agency businesses

  • HIGHER PATIENT VOLUMES - Total home health admissions rose 39.4% and hospice average daily census increased 34.6%


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Revenue

Slight Beat*

$302.30 mln

$299.37 mln (7 Analysts)

Q3 Adjusted EPS

Miss

$0.35

$0.36 (7 Analysts)

Q3 EPS

$0.26

Q3 Net Income Attributable to Pennant

$9.64 mln

*Applies to a deviation of less than 1%; not applicable for per-share numbers.


Analyst Coverage

  • The current average analyst rating on the shares is "strong buy" and the breakdown of recommendations is 7 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the healthcare facilities & services peer group is "buy."

  • Wall Street's median 12-month price target for The Pennant Group, Inc. is $47.00, about 14.1% above its November 3 closing price of $41.19

  • The stock recently traded at 27 times the next 12-month earnings vs. a P/E of 27 three months ago


Reuters Recommended Reads

  • Nov 3 - Addus HomeCare Q3 adjusted EPS beats estimates; to acquire AccentCare personal care division

  • Nov 2 - Diversified Healthcare Trust Q3 net loss narrows amid occupancy growth

  • Nov 3 - Senior care provider InnovAge's Q1 revenue beats as participants increase


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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