Pennant Q1 revenue rises, beats estimates on acquisition growth

Pennant group

06/05/2026 21:56

Overview

US home health and hospice provider's Q1 revenue rose 36%, beating analyst expectations

Adjusted EPS for Q1 beat analyst expectations

Company says growth driven by operational improvements and integration of acquisitions

Outlook

Company expects continued operational improvement as newly acquired operations are integrated

Pennant aims to drive margins toward long-term targets as integration progresses

Company notes headwinds from reimbursement cuts but expects to unlock additional potential

Result Drivers

ACQUISITION INTEGRATION - Co said Q1 results were driven by integration of newly acquired operations in the southeast, with two of five waves fully transitioned and census above acquisition levels

ORGANIC GROWTH - Co reported strong year-over-year organic growth in home health and hospice admissions and senior living occupancy

OPERATIONAL IMPROVEMENTS - Same store margins improved and operational rigor was maintained despite integration demands and a 1.3% home health reimbursement cut

Company press release: ID:nGNXtbCsH

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
Beat
$285.40 mln
$280.75 mln (7 Analysts)
Q1 Adjusted EPS
Beat
$0.32
$0.30 (7 Analysts)
Q1 EPS
$0.24
Q1 Net Income
$8.50 mln


Analyst Coverage

The current average analyst rating on the shares is "strong buy" and the breakdown of recommendations is 7 "strong buy" or "buy", no "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 is $37.50, about 19.2% above its May 5 closing price of $31.46

The stock recently traded at 23 times the next 12-month earnings vs. a P/E of 21 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(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.)