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  • Professor Andrea M. Armani, University of Southern California
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The Pennant Group (PNTG) Q1 Earnings Report Preview: What To Look For

PNTG Cover Image

Senior living provider The Pennant Group (NASDAQ: PNTG) will be announcing earnings results tomorrow after market close. Here’s what you need to know.

The Pennant Group beat analysts’ revenue expectations by 1.4% last quarter, reporting revenues of $188.9 million, up 29.4% year on year. 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.

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 28.4% year on year to $201.5 million, improving from the 24.1% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.24 per share.

The Pennant Group Total Revenue

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 4.8% on average.

Looking at The Pennant Group’s peers in the senior health, home health & hospice segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Option Care Health delivered year-on-year revenue growth of 16.3%, beating analysts’ expectations by 6.1%, and Chemed reported revenues up 9.8%, topping estimates by 0.8%. Option Care Health traded down 2% following the results while Chemed was also down 6.9%.

Read our full analysis of Option Care Health’s results here and Chemed’s results here.

There has been positive sentiment among investors in the senior health, home health & hospice segment, with share prices up 4.9% on average over the last month. The Pennant Group is up 9.6% during the same time and is heading into earnings with an average analyst price target of $31.25 (compared to the current share price of $26.69).

When a company has more cash than it knows what to do with, buying back its own shares can make a lot of sense–as long as the price is right. Luckily, we’ve found one, a low-priced stock that is gushing free cash flow AND buying back shares. Click here to claim your Special Free Report on a fallen angel growth story that is already recovering from a setback.

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