The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let’s take a look at how senior health, home health & hospice stocks fared in Q1, starting with Addus HomeCare (NASDAQ: ADUS).
The senior health, home care, and hospice care industries provide essential services to aging populations and patients with chronic or terminal conditions. These companies benefit from stable, recurring revenue driven by relationships with patients and families that can extend many months or even years. However, the labor-intensive nature of the business makes it vulnerable to rising labor costs and staffing shortages, while profitability is constrained by reimbursement rates from Medicare, Medicaid, and private insurers. Looking ahead, the industry is positioned for tailwinds from an aging population, increasing chronic disease prevalence, and a growing preference for personalized in-home care. Advancements in remote monitoring and telehealth are expected to enhance efficiency and care delivery. However, headwinds such as labor shortages, wage inflation, and regulatory uncertainty around reimbursement could pose challenges. Investments in digitization and technology-driven care will be critical for long-term success.
The 7 senior health, home health & hospice stocks we track reported a strong Q1. As a group, revenues beat analysts’ consensus estimates by 2.3%.
Thankfully, share prices of the companies have been resilient as they are up 6.8% on average since the latest earnings results.
Addus HomeCare (NASDAQ: ADUS)
Serving approximately 66,000 clients across 22 states with a focus on "dual eligible" Medicare and Medicaid beneficiaries, Addus HomeCare (NASDAQ: ADUS) provides in-home personal care, hospice, and home health services to elderly, chronically ill, and disabled individuals.
Addus HomeCare reported revenues of $337.7 million, up 20.3% year on year. This print fell short of analysts’ expectations by 0.6%. Overall, it was a mixed quarter for the company with a narrow beat of analysts’ sales volume estimates.
Commenting on the results, Dirk Allison, Chairman and Chief Executive Officer, said, “Addus had a strong start to 2025, delivering a solid financial and operating performance as we continue to see solid demand for our home-based care services across the continuum. Revenue for the first quarter of 2025 was up 20.3% and adjusted EBITDA increased 25.1% over the same period last year. These results reflect solid organic growth and include the first full quarter of the personal care operations of Gentiva, which we acquired on December 2, 2024.
Addus HomeCare delivered the weakest performance against analyst estimates of the whole group. Interestingly, the stock is up 10.8% since reporting and currently trades at $115.64.
Is now the time to buy Addus HomeCare? Access our full analysis of the earnings results here, it’s free.
Best Q1: BrightSpring Health Services (NASDAQ: BTSG)
Founded in 1974, BrightSpring Health Services (NASDAQ: BTSG) offers home health care, hospice, neuro-rehabilitation, and pharmacy services.
BrightSpring Health Services reported revenues of $2.88 billion, up 11.7% year on year, outperforming analysts’ expectations by 4.6%. The business had an exceptional quarter with an impressive beat of analysts’ EPS estimates and full-year revenue guidance exceeding analysts’ expectations.
BrightSpring Health Services scored the highest full-year guidance raise among its peers. The market seems happy with the results as the stock is up 29% since reporting. It currently trades at $23.08.
Is now the time to buy BrightSpring Health Services? Access our full analysis of the earnings results here, it’s free.
Weakest Q1: Brookdale (NYSE: BKD)
With a network of over 650 communities serving approximately 59,000 residents across 41 states, Brookdale Senior Living (NYSE: BKD) operates senior living communities across the United States, offering independent living, assisted living, memory care, and continuing care retirement communities.
Brookdale reported revenues of $813.9 million, up 4% year on year, in line with analysts’ expectations. It was a slower quarter as it posted a significant miss of analysts’ EPS estimates.
Interestingly, the stock is up 3.1% since the results and currently trades at $7.
Read our full analysis of Brookdale’s results here.
The Pennant Group (NASDAQ: PNTG)
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.
The Pennant Group reported revenues of $209.8 million, up 33.7% year on year. This print topped analysts’ expectations by 4.1%. It was an exceptional quarter as it also recorded an impressive beat of analysts’ EPS estimates and a narrow beat of analysts’ sales volume estimates.
The Pennant Group achieved the fastest revenue growth among its peers. The stock is up 5.4% since reporting and currently trades at $28.34.
Read our full, actionable report on The Pennant Group here, it’s free.
Option Care Health (NASDAQ: OPCH)
With a nationwide network of 177 locations serving 43 states and a team of over 4,500 clinicians, Option Care Health (NASDAQ: OPCH) is the largest independent provider of home and alternate site infusion services, delivering medications and clinical support to patients across the United States.
Option Care Health reported revenues of $1.33 billion, up 16.3% year on year. This result surpassed analysts’ expectations by 6.1%. Overall, it was a very strong quarter as it also produced an impressive beat of analysts’ EPS estimates and full-year revenue guidance slightly topping analysts’ expectations.
Option Care Health pulled off the biggest analyst estimates beat among its peers. The stock is down 3.7% since reporting and currently trades at $31.75.
Read our full, actionable report on Option Care Health here, it’s free.
Market Update
The Fed’s interest rate hikes throughout 2022 and 2023 have successfully cooled post-pandemic inflation, bringing it closer to the 2% target. Inflationary pressures have eased without tipping the economy into a recession, suggesting a soft landing. This stability, paired with recent rate cuts (0.5% in September 2024 and 0.25% in November 2024), fueled a strong year for the stock market in 2024. The markets surged further after Donald Trump’s presidential victory in November, with major indices reaching record highs in the days following the election. Still, questions remain about the direction of economic policy, as potential tariffs and corporate tax changes add uncertainty for 2025.
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