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PACS Group shares rebound as Q2 results beat expectations
PACS Group reported revenue of $1.43 billion in Q2, up 9.1% year over year, alongside net income up 49.8% to $76.3 million.
PACS Group, a skilled nursing operator, is seeing its stock rating improve after a rebound from a steep decline tied to Medicare billing allegations and related probes, according to MarketBeat Ratings. The company has since reported momentum in performance, with analysts now rating it a Buy as it continues to navigate legal risk.
In its August update, PACS reported second-quarter results showing revenue rose 9.1% year over year to $1.43 billion, beating Wall Street expectations of $1.41 billion. Net income climbed 49.8% to $76.3 million, and diluted EPS increased 51.6% to 47 cents.
PACS also reported adjusted EPS of 63 cents, which topped consensus by 9 cents. The company said its adjusted EBITDAR margin expanded 150 basis points, from 10.2% to 11.7%, supported by same-store skilled nursing revenue growth of 5.8% and a shift toward a higher-acuity patient mix.
Looking ahead, PACS raised full-year guidance to revenue between $5.75 billion and $5.85 billion, and adjusted EBITDA between $640 million and $660 million. MarketBeat Ratings also noted that PACS went public in April 2024 via a $450 million IPO at $21 per share and that it has faced unresolved DOJ and SEC investigations and shareholder lawsuits tied to earlier events.