Overview

• Pennant Group Q3 revenue grows 26.8% yr/yr, beating analyst expectations

• Adjusted EPS for Q3 beats analyst expectations, indicating strong operational performance

• Company completed acquisition of 54 operations from UnitedHealth and Amedisys

Outlook

• Pennant expects 2025 revenue between $911.4 mln and $948.6 mln

• Company anticipates 2025 adjusted EPS between $1.14 and $1.18

• Pennant forecasts 2025 adjusted EBITDA between $70.9 mln and $73.8 mln

Result Drivers

• HOME HEALTH GROWTH - Home Health and Hospice Services segment revenue increased by 27.9%, driven by a 36.2% rise in total home health admissions

• SENIOR LIVING PERFORMANCE - Senior Living Services segment revenue rose by 23.2%, with occupancy increasing by 180 basis points

• ACQUISITION IMPACT - Acquisition of 54 operations from UnitedHealth and Amedisys expected to enhance regional presence and performance

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 2 "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 Pennant Group Inc is $32.00, about 21% above its November 4 closing price of $25.28

• The stock recently traded at 20 times the next 12-month earnings vs. a P/E of 18 three months ago

Press Release: ID:nGNX33TLfS

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(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.)