Senior living provider The Pennant Group (NASDAQ: PNTG) will be reporting earnings tomorrow afternoon. Here’s what investors should know.
The Pennant Group beat analysts’ revenue expectations by 2.8% last quarter, reporting revenues of $180.7 million, up 28.9% year on year. It was a strong quarter for the company, with a solid beat of analysts’ EPS estimates and a narrow beat of analysts’ sales volume estimates.
Is The Pennant Group a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting The Pennant Group’s revenue to grow 27.7% year on year to $186.3 million, improving from the 17.1% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.24 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. The Pennant Group has a history of exceeding Wall Street’s expectations, beating revenue estimates every single time over the past two years by 5.5% on average.
Looking at The Pennant Group’s peers in the senior health, home health & hospice segment, some have already reported their Q4 results, giving us a hint as to what we can expect. and AdaptHealth reported flat revenue, topping estimates by 3.3%.
Read our full analysis of Option Care Health’s results here and AdaptHealth’s results here.
Valuation multiples for many growth stocks have not yet reverted to their early 2021 highs, but the market has been optimistic as of late due to a soft landing. This is an economic situation where rate hikes successfully quelled inflation but did not send the economy into a recession. Furthermore, recent rate cuts and Donald Trump's triumph in the 2024 Presidential election have been tailwinds for the market, and while some of the senior health, home health & hospice stocks have shown solid performance, the group has generally underperformed, with share prices down 4.4% on average over the last month. The Pennant Group’s stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $36 (compared to the current share price of $26.50).
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