Latest news with #PNTG
Yahoo
20-05-2025
- Business
- Yahoo
PNTG Q1 Earnings Call: Acquisition Momentum and Organic Growth Drive Outperformance
Senior living provider The Pennant Group (NASDAQ:PNTG) announced better-than-expected revenue in Q1 CY2025, with sales up 33.7% year on year to $209.8 million. Its non-GAAP profit of $0.27 per share was 13.7% above analysts' consensus estimates. Is now the time to buy PNTG? Find out in our full research report (it's free). Revenue: $209.8 million vs analyst estimates of $201.5 million (33.7% year-on-year growth, 4.1% beat) Adjusted EPS: $0.27 vs analyst estimates of $0.24 (13.7% beat) Adjusted EBITDA: $16.37 million vs analyst estimates of $14.22 million (7.8% margin, 15.2% beat) Operating Margin: 6%, in line with the same quarter last year Free Cash Flow was -$21.11 million compared to -$2.85 million in the same quarter last year Sales Volumes rose 28.9% year on year (34.3% in the same quarter last year) Market Capitalization: $1.04 billion The Pennant Group's Q1 results were shaped by a combination of organic growth and integration of recent acquisitions, particularly in its Home Health and Hospice segment. CEO Brent Guerisoli pointed to the company's continued focus on leadership development, clinical excellence, and margin improvement as key drivers, with the Signature Healthcare transaction contributing to above-expectation performance. President John Gochnour highlighted strong growth in both new and existing operations, with home health admissions and hospice census rising notably. Looking ahead, management's guidance is influenced by the early progress in integrating acquired operations and a disciplined approach to further M&A. Guerisoli stated that the company is now 'pointing to the upper end of our 2025 guidance range,' reflecting sustained operational momentum and a robust pipeline of acquisition opportunities. Management also acknowledged ongoing monitoring of macroeconomic uncertainties and potential impacts on occupancy and pricing, especially in the senior living segment. Management attributed Q1's outperformance to successful acquisition transitions, organic growth in core segments, and strategic investments in leadership and clinical programs. Integration of the Signature Healthcare acquisition played a significant role in driving both revenue and operational gains. Acquisition Integration Success: The Signature Healthcare transition exceeded expectations, with effective onboarding of leaders and employees, quick adoption of Pennant's systems, and clinical integration leading to accelerated operational improvement. Home Health and Hospice Expansion: Organic and acquisition-driven growth in this segment resulted in higher admissions and average daily census, supported by investments in specialized care programs such as palliative and geriatric primary care. Senior Living Revenue Quality: Management focused on capturing higher-quality revenue in senior living, leading to an 11% increase in revenue per occupied room despite flat occupancy, and further margin improvement. Operational Efficiency and Clinical Outcomes: The company highlighted above-industry clinical quality ratings and reduced preventable hospitalizations, crediting disciplined local management and targeted clinical leadership development. M&A Pipeline and Transaction Update: Ongoing evaluation of further acquisition targets continues, including a pending asset purchase from UnitedHealth Group and Amedisys, with management emphasizing leadership readiness as a gating factor for future deals. Management's outlook for the remainder of the year centers on continued integration of recent acquisitions, disciplined pursuit of new opportunities, and cautious monitoring of macro-driven risks to occupancy and rate growth. Acquisition Execution: The pace and success of integrating newly acquired operations, such as Signature Healthcare and pending UnitedHealth-Amedisys assets, are expected to be primary contributors to revenue and margin trends. Organic Growth and Leadership Pipeline: Ongoing investment in local leadership and clinical programs is seen as critical for sustaining organic growth and improving profitability in both core segments. Macroeconomic Sensitivity: Management identified labor cost inflation and economic pressures on senior living residents as potential risks to occupancy and rate increases, requiring careful balance between pricing and census growth. Stephen Baxter (Wells Fargo): Asked about the factors driving the reacceleration of same-store growth in home health and hospice, with management attributing it to seasonal patterns and ongoing community adoption. Stephen Baxter (Wells Fargo): Requested further detail on which segment contributed most to the raised guidance and whether margin assumptions had changed, with leadership emphasizing balanced outperformance and continued momentum in both segments. Stephen Baxter (Wells Fargo): Inquired about the company's approach to evaluating the pending UnitedHealth-Amedisys asset deal, with CEO Guerisoli stressing leadership readiness and operational fit as key criteria for such transactions. Stephen Baxter (Wells Fargo): Sought clarification on the sustainability of strong rate growth in senior living amid economic uncertainty, with management noting the importance of revenue quality and partnerships with Medicaid and state programs. Stephen Baxter (Wells Fargo): Queried about hiring and retention trends, to which management reported positive hiring momentum, especially among nurses, but noted ongoing vigilance around labor costs and economic changes. Over the coming quarters, the StockStory team will focus on (1) the pace and effectiveness of newly acquired asset integrations, particularly the impact of the pending UnitedHealth-Amedisys transaction; (2) the sustainability of organic growth in home health admissions and hospice census; and (3) management's ability to balance senior living pricing initiatives with occupancy stability. Trends in labor inflation and execution on leadership development will also be closely watched as indicators of future performance. The Pennant Group currently trades at a forward P/E ratio of 26.7×. Is the company at an inflection point that warrants a buy or sell? See for yourself in our free research report. The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 176% over the last five years. Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
17-05-2025
- Business
- Yahoo
Pennant Group names Ensign Group CFO Suzanne Snapper to board
The Pennant Group (PNTG), the parent company of the Pennant group of affiliated home health, hospice and senior living companies, announced the appointment of Suzanne D. Snapper to its board of directors following her election by a vote of shareholders in connection with the company's annual shareholder meeting. Snapper is the CFO of the Ensign Group (ENSG). Snapper's appointment is effective today, May 16. Quickly and easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks straight to you inbox with TipRanks' Smart Value Newsletter Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>> See the top stocks recommended by analysts >> Read More on PNTG: Disclaimer & DisclosureReport an Issue Pennant Group Reports Strong Earnings and Growth Pennant Group price target raised to $32 from $28 at Truist Pennant Group Reports Strong Q1 2025 Performance Pennant Group Reports Strong Q1 2025 Financial Results Pennant Group reports Q1 adjusted EPS 27c, consensus 24c
Yahoo
01-05-2025
- Business
- Yahoo
1 Stock Under $50 Worth Your Attention and 2 to Avoid
Stocks in the $10-50 range offer a sweet spot between affordability and stability as they're typically more established than penny stocks. But their headline prices don't guarantee quality, and investors should exercise caution as some have shaky business models. This is precisely where StockStory comes in - we do the heavy lifting to identify companies with solid fundamentals so you can invest with confidence. That said, here is one stock under $50 with huge potential and two that may have trouble. Share Price: $16.55 Founded in 2008 by Facebook's co-founder Dustin Moskovitz, Asana (NYSE:ASAN) is a cloud-based project management software, where you can plan and assign tasks to employees and monitor and discuss progress of work. Why Are We Hesitant About ASAN? Offerings struggled to generate meaningful interest as its average billings growth of 9.4% over the last year did not impress Customers have churned over the last year due to the commoditized nature of its software, as reflected in its 97.5% net revenue retention rate Operating losses show it sacrificed profitability while scaling the business Asana is trading at $16.55 per share, or 4.8x forward price-to-sales. Read our free research report to see why you should think twice about including ASAN in your portfolio, it's free. Share Price: $25.62 Spun off from The Ensign Group in 2019 to focus on non-skilled nursing healthcare services, Pennant Group (NASDAQ:PNTG) operates home health, hospice, and senior living facilities across 13 western and midwestern states, serving patients of all ages including seniors. Why Does PNTG Worry Us? Revenue base of $695.2 million puts it at a disadvantage compared to larger competitors exhibiting economies of scale 3.6 percentage point decline in its free cash flow margin over the last five years reflects the company's increased investments to defend its market position Below-average returns on capital indicate management struggled to find compelling investment opportunities The Pennant Group's stock price of $25.62 implies a valuation ratio of 23.5x forward price-to-earnings. If you're considering PNTG for your portfolio, see our FREE research report to learn more. Share Price: $43.65 Parent company of SeaWorld and home of the world-famous Shamu, United Parks & Resorts (NYSE:PRKS) is a theme park chain featuring marine life, live entertainment, roller coasters, and waterparks. Why Are We Positive On PRKS? Healthy operating margin of 26.7% shows it's a well-run company with efficient processes Performance over the past five years was turbocharged by share buybacks, which enabled its earnings per share to grow faster than its revenue Returns on capital are climbing as management makes more lucrative bets At $43.65 per share, United Parks & Resorts trades at 8.9x forward price-to-earnings. Is now the time to initiate a position? See for yourself in our in-depth research report, it's free. Market indices reached historic highs following Donald Trump's presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth. While this has caused many investors to adopt a "fearful" wait-and-see approach, we're leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 175% over the last five years. Stocks that made our list in 2019 include now familiar names such as Nvidia (+2,183% between December 2019 and December 2024) as well as under-the-radar businesses like Comfort Systems (+751% five-year return). Find your next big winner with StockStory today for free.
