Latest news with #ThePennantGroup
Yahoo
5 days ago
- Business
- Yahoo
How Much Upside is Left in The Pennant Group (PNTG)? Wall Street Analysts Think 31.17%
The Pennant Group, Inc. (PNTG) closed the last trading session at $24.7, gaining 3.3% over the past four weeks, but there could be plenty of upside left in the stock if short-term price targets set by Wall Street analysts are any guide. The mean price target of $32.4 indicates a 31.2% upside potential. The mean estimate comprises five short-term price targets with a standard deviation of $3.85. While the lowest estimate of $28.00 indicates a 13.4% increase from the current price level, the most optimistic analyst expects the stock to surge 49.8% to reach $37.00. It's very important to note the standard deviation here, as it helps understand the variability of the estimates. The smaller the standard deviation, the greater the agreement among analysts. While the consensus price target is a much-coveted metric for investors, solely banking on this metric to make an investment decision may not be wise at all. That's because the ability and unbiasedness of analysts in setting price targets have long been questionable. But, for PNTG, an impressive average price target is not the only indicator of a potential upside. Strong agreement among analysts about the company's ability to report better earnings than they predicted earlier strengthens this view. While a positive trend in earnings estimate revisions doesn't gauge how much a stock could gain, it has proven to be powerful in predicting an upside. Price, Consensus and EPS Surprise Here's What You Should Know About Analysts' Price Targets According to researchers at several universities across the globe, a price target is one of many pieces of information about a stock that misleads investors far more often than it guides. In fact, empirical research shows that price targets set by several analysts, irrespective of the extent of agreement, rarely indicate where the price of a stock could actually be heading. While Wall Street analysts have deep knowledge of a company's fundamentals and the sensitivity of its business to economic and industry issues, many of them tend to set overly optimistic price targets. Are you wondering why? They usually do that to drum up interest in shares of companies that their firms either have existing business relationships with or are looking to be associated with. In other words, business incentives of firms covering a stock often result in inflated price targets set by analysts. However, a tight clustering of price targets, which is represented by a low standard deviation, indicates that analysts have a high degree of agreement about the direction and magnitude of a stock's price movement. While that doesn't necessarily mean the stock will hit the average price target, it could be a good starting point for further research aimed at identifying the potential fundamental driving forces. That said, while investors should not entirely ignore price targets, making an investment decision solely based on them could lead to disappointing ROI. So, price targets should always be treated with a high degree of skepticism. Here's Why There Could be Plenty of Upside Left in PNTG There has been increasing optimism among analysts lately about the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher. And that could be a legitimate reason to expect an upside in the stock. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. For the current year, two estimates have moved higher over the last 30 days compared to no negative revision. As a result, the Zacks Consensus Estimate has increased 3.3%. Moreover, PNTG currently has a Zacks Rank #2 (Buy), which means it is in the top 20% of more than 4,000 stocks that we rank based on four factors related to earnings estimates. Given an impressive externally-audited track record, this is a more conclusive indication of the stock's potential upside in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> . Therefore, while the consensus price target may not be a reliable indicator of how much PNTG could gain, the direction of price movement it implies does appear to be a good guide. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report The Pennant Group, Inc. (PNTG) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
05-08-2025
- Business
- Yahoo
The Pennant Group (PNTG) To Report Earnings Tomorrow: Here Is What To Expect
Senior living provider The Pennant Group (NASDAQ:PNTG) will be reporting results this Wednesday after market close. Here's what investors should know. The Pennant Group beat analysts' revenue expectations by 4.1% last quarter, reporting revenues of $209.8 million, up 33.7% year on year. It was an exceptional quarter for the company, with an impressive beat of analysts' EPS estimates and a narrow beat of analysts' sales volume estimates. 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 24.9% year on year to $210.7 million, slowing from the 27.6% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.27 per share. The majority of analysts covering the company have 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 5% on average. Looking at The Pennant Group's peers in the senior health, home health & hospice segment, some have already reported their Q2 results, giving us a hint as to what we can expect. BrightSpring Health Services delivered year-on-year revenue growth of 15.3%, beating analysts' expectations by 5.2%, and Option Care Health reported revenues up 15.4%, topping estimates by 4.6%. BrightSpring Health Services traded down 6.1% following the results while Option Care Health was also down 2.7%. Read our full analysis of BrightSpring Health Services's results here and Option Care Health's results here. Debates around the economy's health and the impact of potential tariffs and corporate tax cuts have caused much uncertainty in 2025. While some of the senior health, home health & hospice stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 3.3% on average over the last month. The Pennant Group is down 11.3% during the same time and is heading into earnings with an average analyst price target of $33.60 (compared to the current share price of $22.94). Today's young investors likely haven't read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next. StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here. 擷取數據時發生錯誤 登入存取你的投資組合 擷取數據時發生錯誤 擷取數據時發生錯誤 擷取數據時發生錯誤 擷取數據時發生錯誤
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
16-05-2025
- Business
- Yahoo
Additional Considerations Required While Assessing Pennant Group's (NASDAQ:PNTG) Strong Earnings
Unsurprisingly, The Pennant Group, Inc.'s (NASDAQ:PNTG) stock price was strong on the back of its healthy earnings report. We did some analysis and think that investors are missing some details hidden beneath the profit numbers. We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free. One essential aspect of assessing earnings quality is to look at how much a company is diluting shareholders. In fact, Pennant Group increased the number of shares on issue by 15% over the last twelve months by issuing new shares. As a result, its net income is now split between a greater number of shares. Per share metrics like EPS help us understand how much actual shareholders are benefitting from the company's profits, while the net income level gives us a better view of the company's absolute size. Check out Pennant Group's historical EPS growth by clicking on this link. Pennant Group has improved its profit over the last three years, with an annualized gain of 821% in that time. In comparison, earnings per share only gained 712% over the same period. And the 55% profit boost in the last year certainly seems impressive at first glance. But in comparison, EPS only increased by 43% over the same period. So you can see that the dilution has had a bit of an impact on shareholders. Changes in the share price do tend to reflect changes in earnings per share, in the long run. So it will certainly be a positive for shareholders if Pennant Group can grow EPS persistently. However, if its profit increases while its earnings per share stay flat (or even fall) then shareholders might not see much benefit. For the ordinary retail shareholder, EPS is a great measure to check your hypothetical "share" of the company's profit. That might leave you wondering what analysts are forecasting in terms of future profitability. Luckily, you can click here to see an interactive graph depicting future profitability, based on their estimates. Each Pennant Group share now gets a meaningfully smaller slice of its overall profit, due to dilution of existing shareholders. Therefore, it seems possible to us that Pennant Group's true underlying earnings power is actually less than its statutory profit. But on the bright side, its earnings per share have grown at an extremely impressive rate over the last three years. Of course, we've only just scratched the surface when it comes to analysing its earnings; one could also consider margins, forecast growth, and return on investment, among other factors. Obviously, we love to consider the historical data to inform our opinion of a company. But it can be really valuable to consider what other analysts are forecasting. So feel free to check out our free graph representing analyst forecasts. Today we've zoomed in on a single data point to better understand the nature of Pennant Group's profit. But there are plenty of other ways to inform your opinion of a company. Some people consider a high return on equity to be a good sign of a quality business. While it might take a little research on your behalf, you may find this free collection of companies boasting high return on equity, or this list of stocks with significant insider holdings to be useful. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. 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
07-05-2025
- Business
- Yahoo
The Pennant Group (NASDAQ:PNTG) Beats Expectations in Strong Q1
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 The Pennant Group? Find out in our full research report. The Pennant Group (PNTG) Q1 CY2025 Highlights: 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%, up from 5% in the same quarter last year Sales Volumes rose 28.9% year on year (34.3% in the same quarter last year) Market Capitalization: $928.4 million 'We are off to a strong start in 2025,' said Brent Guerisoli, the Company's Chief Executive Officer. Company Overview 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. Sales Growth Reviewing a company's long-term sales performance reveals insights into its quality. Even a bad business can shine for one or two quarters, but a top-tier one grows for years. Thankfully, The Pennant Group's 16.2% annualized revenue growth over the last five years was solid. Its growth beat the average healthcare company and shows its offerings resonate with customers. The Pennant Group Quarterly Revenue Long-term growth is the most important, but within healthcare, a half-decade historical view may miss new innovations or demand cycles. The Pennant Group's annualized revenue growth of 24.1% over the last two years is above its five-year trend, suggesting its demand was strong and recently accelerated. The Pennant Group Year-On-Year Revenue Growth We can better understand the company's revenue dynamics by analyzing its number of admissions, which reached 18,878 in the latest quarter. Over the last two years, The Pennant Group's admissions averaged 25.1% year-on-year growth. Because this number is in line with its revenue growth, we can see the company kept its prices fairly consistent. The Pennant Group Admissions This quarter, The Pennant Group reported wonderful year-on-year revenue growth of 33.7%, and its $209.8 million of revenue exceeded Wall Street's estimates by 4.1%. Looking ahead, sell-side analysts expect revenue to grow 13.4% over the next 12 months, a deceleration versus the last two years. Still, this projection is noteworthy and implies the market is forecasting success for its products and services.
