Senior Health, Home Health & Hospice Stocks Q4 Recap: Benchmarking The Pennant Group (NASDAQ:PNTG)
April 11, 2025
Earnings results often indicate what direction a company will take in the months ahead. With Q4 behind us, let’s have a look at The Pennant Group (NASDAQ:PNTG) and its peers.
The senior health, home care, and hospice care industries provide essential services to aging populations and patients with chronic or terminal conditions. These companies benefit from stable, recurring revenue driven by relationships with patients and families that can extend many months or even years. However, the labor-intensive nature of the business makes it vulnerable to rising labor costs and staffing shortages, while profitability is constrained by reimbursement rates from Medicare, Medicaid, and private insurers. Looking ahead, the industry is positioned for tailwinds from an aging population, increasing chronic disease prevalence, and a growing preference for personalized in-home care. Advancements in remote monitoring and telehealth are expected to enhance efficiency and care delivery. However, headwinds such as labor shortages, wage inflation, and regulatory uncertainty around reimbursement could pose challenges. Investments in digitization and technology-driven care will be critical for long-term success.
The 7 senior health, home health & hospice stocks we track reported a strong Q4. As a group, revenues beat analysts’ consensus estimates by 2%.
In light of this news, share prices of the companies have held steady. On average, they are relatively unchanged since the latest earnings results.
The Pennant Group (NASDAQ:PNTG)
Spun off from The Ensign Group in 2019 to focus on non-skilled nursing healthcare services, Pennant Group (NASDAQ:PNTG) operates home health, hospice, and senior living facilities across 13 western and midwestern states, serving patients of all ages including seniors.
The Pennant Group reported revenues of $188.9 million, up 29.4% year on year. This print exceeded analysts’ expectations by 1.4%. Overall, it was a strong quarter for the company with a solid beat of analysts’ sales volume estimates and full-year revenue guidance beating analysts’ expectations.
“We are pleased to conclude a remarkable year, with strong performance in revenue, adjusted EBITDA, and adjusted earnings per share,” said Brent Guerisoli, the Company’s Chief Executive Officer.
The Pennant Group scored the fastest revenue growth of the whole group. Investor expectations, however, were likely higher than Wall Street’s published projections, leaving some wishing for even better results (analysts’ consensus estimates are those published by big banks and advisory firms, not the investors who make buy and sell decisions). The stock is down 3.3% since reporting and currently trades at $24.69.
With a nationwide network of 177 locations serving 43 states and a team of over 4,500 clinicians, Option Care Health (NASDAQ:OPCH) is the largest independent provider of home and alternate site infusion services, delivering medications and clinical support to patients across the United States.
Option Care Health reported revenues of $1.35 billion, up 19.7% year on year, outperforming analysts’ expectations by 4.9%. The business had an exceptional quarter with an impressive beat of analysts’ full-year EPS guidance estimates.
Option Care Health scored the biggest analyst estimates beat and highest full-year guidance raise among its peers. The market seems content with the results as the stock is up 1.1% since reporting. It currently trades at $33.02.
With a network of over 650 communities serving approximately 59,000 residents across 41 states, Brookdale Senior Living (NYSE:BKD) operates senior living communities across the United States, offering independent living, assisted living, memory care, and continuing care retirement communities.
Brookdale reported revenues of $780.9 million, up 3.5% year on year, in line with analysts’ expectations. It was a slower quarter as it posted a significant miss of analysts’ EPS estimates.
Brookdale delivered the weakest performance against analyst estimates in the group. Interestingly, the stock is up 5.1% since the results and currently trades at $5.58.
With a network of approximately 680 locations serving patients across all 50 states, AdaptHealth (NASDAQ:AHCO) provides home medical equipment, supplies, and related services to patients with chronic conditions like sleep apnea, diabetes, and respiratory disorders.
AdaptHealth reported revenues of $856.6 million, flat year on year. This result beat analysts’ expectations by 3.3%. Overall, it was a strong quarter as it also put up a solid beat of analysts’ EPS estimates and full-year EBITDA guidance slightly topping analysts’ expectations.
AdaptHealth had the slowest revenue growth and weakest full-year guidance update among its peers. The stock is up 4.7% since reporting and currently trades at $8.95.
Serving approximately 66,000 clients across 22 states with a focus on "dual eligible" Medicare and Medicaid beneficiaries, Addus HomeCare (NASDAQ:ADUS) provides in-home personal care, hospice, and home health services to elderly, chronically ill, and disabled individuals.
Addus HomeCare reported revenues of $297.1 million, up 7.5% year on year. This print topped analysts’ expectations by 2.7%. It was a very strong quarter as it also recorded an impressive beat of analysts’ sales volume estimates and a decent beat of analysts’ EPS estimates.
The stock is down 5.6% since reporting and currently trades at $102.69.
Thanks to the Fed’s series of rate hikes in 2022 and 2023, inflation has cooled significantly from its post-pandemic highs, drawing closer to the 2% goal. This disinflation has occurred without severely impacting economic growth, suggesting the success of a soft landing. The stock market thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% in November), and a notable surge followed Donald Trump’s presidential election win in November, propelling indices to historic highs. Nonetheless, the outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. The path forward holds both optimism and caution as new policies take shape.
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