Aveanna Healthcare Holdings Inc. ( AVAH ) reported on Thursday fourth-quarter adjusted EPS of five cents, a turnaround from a loss of two cents.

Home care platform provider reported sales of $519.9 million, up 8.6% year-over-year, beating the consensus of $499.6 million.

The overall revenue increase was attributable to a $38.7 million increase in Private Duty Services segment revenue, a $2 million increase in Medical Solutions segment revenue, and a $0.3 million increase in Home Health & Hospice segment revenue.

CEO Jeff Shaner said, “Our fourth quarter results reflect an exceptional year of transformation at Aveanna … Looking forward to 2025, we look to build on these results by continuing to enhance our government and payor partnerships while leveraging our unique care platform. We look forward to delivering even more cost-effective, high-quality care in the home in 2025.”

Gross margin was $171.7 million, or 33% of revenue, compared to $148.4 million, or 31% a year ago.

Adjusted EBITDA was $55.2 million, or 10.6% of revenue, for the fourth quarter of 2024, compared to $38.7 million, or 8.1% of revenue, for the fourth quarter of 2023.

Guidance: Aveanna Healthcare ( AVAH ) forecasts 2025 revenue of $2.10 billion-$2.12 billion versus a consensus of $2.11 billion, with adjusted EBITDA of $190 million-$194 million.

“Strategic cost reductions have played a key role in driving profitability, alongside the success of our preferred payor strategy and improvements in rates from our Government Affairs efforts,” CFO Matt Buckhalter said.

“Our operating cash flow and free cash flow ended the year on a positive note, reinforcing the success of our strategy and emphasizing the ongoing strength of the business … We expect continued organic volume growth, improved clinical outcomes, and enhanced profitability into 2025.”

AVAH Price Action: Aveanna Healthcare Holdings ( AVAH ) stock is up 39.57% at $5.23 at publication Thursday.

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