Overview

* Pennant Group ( PNTG ) Q3 revenue grows 26.8% yr/yr, beating analyst expectations

* Adjusted EPS for Q3 beats analyst expectations, indicating strong operational performance

* Company completed acquisition of 54 operations from UnitedHealth and Amedisys

Outlook

* Pennant expects 2025 revenue between $911.4 mln and $948.6 mln

* Company anticipates 2025 adjusted EPS between $1.14 and $1.18

* Pennant forecasts 2025 adjusted EBITDA between $70.9 mln and $73.8 mln

Result Drivers

* HOME HEALTH GROWTH - Home Health and Hospice Services segment revenue increased by 27.9%, driven by a 36.2% rise in total home health admissions

* SENIOR LIVING PERFORMANCE - Senior Living Services segment revenue rose by 23.2%, with occupancy increasing by 180 basis points

* ACQUISITION IMPACT - Acquisition of 54 operations from UnitedHealth and Amedisys expected to enhance regional presence and performance

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 Beat $229 mln $222.10

Revenue mln (6

Analysts

)

Q3 Beat $0.30 $0.28 (6

Adjusted Analysts

EPS )

Q3 EPS $0.17

Q3 Net $6.10

Income mln

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the healthcare facilities & services peer group is "buy"

* Wall Street's median 12-month price target for Pennant Group Inc ( PNTG ) is $32.00, about 21% above its November 4 closing price of $25.28

* The stock recently traded at 20 times the next 12-month earnings vs. a P/E of 18 three months ago

Press Release:

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)