Let’s dig into the relative performance of The Pennant Group (NASDAQ: PNTG) and its peers as we unravel the now-completed Q3 senior health, home health & hospice earnings season.

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 mixed Q3. As a group, revenues beat analysts’ consensus estimates by 1.8%.

While some senior health, home health & hospice stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 3% since the latest earnings results.

The Pennant Group (NASDAQ: PNTG)

Founded in 2019, The Pennant Group (NASDAQ: PNTG) offers senior living and home healthcare services with a focus on skilled nursing and assisted living.

The Pennant Group reported revenues of $180.7 million, up 28.9% year on year. This print exceeded analysts’ expectations by 2.8%. Overall, it was a strong quarter for the company with a narrow beat of analysts’ sales volume estimates and a decent beat of analysts’ full-year EPS guidance estimates.

“Our strong third quarter financial results demonstrate the momentum we are building across the business, and we are pleased to see robust performance in our existing operations even as we integrate new ones. The equity offering we executed after quarter end, coupled with the expansion of our revolving credit facility during the quarter, position us exceptionally well for future growth. With these operating results and a healthy balance sheet, we are poised for success through the remainder of 2024 and beyond,” 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 20.8% since reporting and currently trades at $26.20.

Is now the time to buy The Pennant Group? Access our full analysis of the earnings results here, it’s free.

Best Q3: Option Care Health (NASDAQ: OPCH)

Founded in 1979, Option Care Health (NASDAQ: OPCH) delivers home and alternate site infusion therapy services, specializing in the administration of medications and care for patients with chronic and acute conditions.

Option Care Health reported revenues of $1.28 billion, up 17% year on year, outperforming analysts’ expectations by 5%. The business had an exceptional quarter with a solid beat of analysts’ EPS estimates and full-year revenue guidance beating analysts’ expectations.

The market seems content with the results as the stock is up 4.6% since reporting. It currently trades at $31.93.

Is now the time to buy Option Care Health? Access our full analysis of the earnings results here, it’s free.

Weakest Q3: Chemed (NYSE: CHE)

Founded in 1970, Chemed (NYSE: CHE) provides hospice care and plumbing services through its subsidiaries VITAS Healthcare and Roto-Rooter, respectively, focusing on end-of-life care and residential and commercial plumbing solutions.

Chemed reported revenues of $606.2 million, up 7.4% year on year, falling short of analysts’ expectations by 1%. It was a disappointing quarter as it posted a miss of analysts’ full-year EPS guidance estimates and a miss of analysts’ EPS estimates.

Chemed delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 8.8% since the results and currently trades at $556.99.

Read our full analysis of Chemed’s results here.

Brookdale (NYSE: BKD)

Founded in 1978, Brookdale Senior Living (NYSE: BKD) offers independent living, assisted living, Alzheimer's and dementia care, rehabilitation, and skilled nursing care.

Brookdale reported revenues of $784.2 million, up 3.5% year on year. This print met analysts’ expectations. Taking a step back, it was a softer quarter as it logged a significant miss of analysts’ EPS estimates and EBITDA guidance for next quarter missing analysts’ expectations.

The stock is down 19.9% since reporting and currently trades at $5.19.

Read our full, actionable report on Brookdale here, it’s free.

BrightSpring Health Services (NASDAQ: BTSG)

Founded in 1974, BrightSpring Health Services (NASDAQ: BTSG) offers home health care, hospice, neuro-rehabilitation, and pharmacy services.

BrightSpring Health Services reported revenues of $2.91 billion, up 28.8% year on year. This number surpassed analysts’ expectations by 6.8%. Overall, it was a strong quarter as it also put up full-year revenue guidance exceeding analysts’ expectations.

BrightSpring Health Services achieved the biggest analyst estimates beat and highest full-year guidance raise among its peers. The stock is up 47.3% since reporting and currently trades at $22.04.

Read our full, actionable report on BrightSpring Health Services here, it’s free.

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