As the craze of earnings season draws to a close, here’s a look back at some of the most exciting (and some less so) results from Q1. Today, we are looking at senior health, home health & hospice stocks, starting with Brookdale (NYSE:BKD).
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 6.7% on average since the latest earnings results.
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. This print was in line with analysts’ expectations, but overall, it was a slower quarter for the company with a significant miss of analysts’ EPS estimates.
"Our solid first quarter results and annual guidance raise are a testament to the significant momentum underway at Brookdale as we continue to meet the diverse needs of the large aging older adult population," said Denise Warren, Brookdale's Interim Chief Executive Officer and Chairman.
The stock is down 2.9% since reporting and currently trades at $6.59.
Read our full report on Brookdale 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 delivered the highest full-year guidance raise among its peers. The market seems happy with the results as the stock is up 32.8% since reporting. It currently trades at $23.75.
Is now the time to buy BrightSpring Health Services? Access our full analysis of the earnings results here, it’s free.
AdaptHealth (NASDAQ:AHCO)
With a network of approximately 680 locations serving patients across all 50 states, AdaptHealth (NASDAQ:AHCO) provides home medical equipment, supplies, and related services to patients with chronic conditions like sleep apnea, diabetes, and respiratory disorders.
AdaptHealth reported revenues of $777.9 million, down 1.8% year on year, exceeding analysts’ expectations by 1.7%. Still, it was a slower quarter as it posted a significant miss of analysts’ EPS estimates and full-year revenue guidance slightly missing analysts’ expectations.
AdaptHealth delivered the slowest revenue growth and weakest full-year guidance update in the group. Interestingly, the stock is up 6.9% since the results and currently trades at $9.30.
Read our full analysis of AdaptHealth’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 beat analysts’ expectations by 4.1%. Overall, 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 pulled off the fastest revenue growth among its peers. The stock is up 8.1% since reporting and currently trades at $29.07.
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 topped analysts’ expectations by 6.1%. It was a very strong quarter as it also logged an impressive beat of analysts’ EPS estimates and full-year revenue guidance slightly topping analysts’ expectations.
Option Care Health achieved the biggest analyst estimates beat among its peers. The stock is down 3% since reporting and currently trades at $32.
Read our full, actionable report on Option Care Health here, it’s free.
Market Update
Thanks to the Fed’s rate hikes in 2022 and 2023, inflation has been on a steady path downward, easing back toward that 2% sweet spot. Fortunately (miraculously to some), all this tightening didn’t send the economy tumbling into a recession, so here we are, cautiously celebrating a soft landing. The cherry on top? Recent rate cuts (half a point in September 2024, a quarter in November) have propped up markets, especially after Trump’s November win lit a fire under major indices and sent them to all-time highs. However, there’s still plenty to ponder — tariffs, corporate tax cuts, and what 2025 might hold for the economy.
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