Pennant Group raises FY24 adjusted EPS view to 90c-96c from 89c-95c

Consensus 91c. Raises FY24 revenue view to $665.3M-$706.5M from $654M-$694.5M, consensus $679.26M. Raises FY24 adjusted EBITDA view $51.9M-$55.2M from $50.7M-$53.8M. “The Company’s updated guidance reflects the continued momentum in the business, and incorporates current operations and organic growth, diluted weighted average shares outstanding of approximately 32.5 million, and a 26.0% effective tax rate,” stated Lynette Walbom, Pennant’s Chief Financial Officer. “It anticipates consistent operating performance through the end of the year, hospice reimbursement rate adjustments, decreased interest expense, and contributions from our joint ventures and management agreements. It excludes unannounced acquisitions, the announced purchase of Signature’s Oregon assets, start-ups, share-based compensation, acquisition-related costs, or one-time implementation and unusual items.”