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 Q4. Today, we are looking at senior health, home health & hospice stocks, 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 Q4. As a group, revenues beat analysts’ consensus estimates by 2%.
While some senior health, home health & hospice stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 3.7% 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 $297.1 million, up 7.5% year on year. This print exceeded analysts’ expectations by 2.7%. Overall, it was a very strong quarter for the company with a solid beat of analysts’ sales volume estimates and a decent beat of analysts’ EPS estimates.
Commenting on the results, Dirk Allison, Chairman and Chief Executive Officer, said, “Our fourth quarter financial and operating performance marked a strong finish to another successful year for Addus. We achieved top-line revenue growth of 7.5%, and adjusted EBITDA was 10.3% higher for the fourth quarter of 2024 compared with the same period last year. For the year, revenues were up 9.1% to reach $1.15 billion, a new annual high for Addus. These results reflect robust demand for our home-based care services and our ability to meet this demand with our proven operating model across the care continuum.
The stock is down 9.1% since reporting and currently trades at $98.81.
Is now the time to buy Addus HomeCare? Access our full analysis of the earnings results here, it’s free.
Best Q4: 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 $1.35 billion, up 19.7% year on year, outperforming analysts’ expectations by 4.9%. The business had an exceptional quarter with an impressive beat of analysts’ full-year EPS guidance estimates and a solid beat of analysts’ EPS estimates.
Option Care Health delivered the biggest analyst estimates beat and highest full-year guidance raise among its peers. The market seems content with the results as the stock is up 3.6% since reporting. It currently trades at $33.83.
Is now the time to buy Option Care Health? Access our full analysis of the earnings results here, it’s free.
Slowest Q4: 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 $780.9 million, up 3.5% year on year, in line with analysts’ expectations. It was a slower quarter as it posted a significant miss of analysts’ EPS estimates.
Brookdale delivered the weakest performance against analyst estimates in the group. Interestingly, the stock is up 9.4% since the results and currently trades at $5.81.
Read our full analysis of Brookdale’s results here.
Chemed (NYSE: CHE)
With a unique business model combining end-of-life care and household services, Chemed (NYSE: CHE) operates two distinct businesses: VITAS, which provides hospice care for terminally ill patients, and Roto-Rooter, which offers plumbing and water restoration services.
Chemed reported revenues of $640 million, up 9.2% year on year. This print topped analysts’ expectations by 0.6%. Overall, it was a satisfactory quarter as it also logged a narrow beat of analysts’ full-year EPS guidance estimates.
The stock is up 7.9% since reporting and currently trades at $589.99.
Read our full, actionable report on Chemed here, it’s free.
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 $3.05 billion, up 28.6% year on year. This number beat analysts’ expectations by 1.1%. More broadly, it was a mixed quarter as it also logged a decent beat of analysts’ EPS estimates but full-year EBITDA guidance missing analysts’ expectations.
The stock is down 53.7% since reporting and currently trades at $8.51.
Read our full, actionable report on BrightSpring Health Services here, it’s free.
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