Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use a variety of methods, including tried-and-true valuation metr ...

Shares of Aveanna Healthcare (AVAH) have rallied 110% in the past three months, breaking out from an eight-month-long consolidation in July. The long period of consolidation gives rise to a potential significant run-up in the share price of AVAH going forward.However, more than a 100% rally in just three months raises concern for a pullback. In this article, we will discuss the factors that should support the potential bull run. We will also focus on whether investors should buy the stock at present.AVAH’s ...

Momentum investing is all about the idea of following a stock's recent trend, which can be in either direction. In the 'long' context, investors will essentially be "buying high, but hoping to sell even higher." And for investors following this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving in that direction. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.Whil ...

Momentum investing is essentially the opposite of the tried-and-tested Wall Street adage -- "buy low and sell high." Investors following this investing style typically avoid betting on cheap stocks and waiting long for them to recover. They believe instead that one could make far more money in lesser time by "buying high and selling higher."Everyone likes betting on fast-moving trending stocks, but it isn't easy to determine the right entry point. These stocks often lose momentum when their future growth po ...

Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use tried-and-true metrics a ...

For the quarter ended June 2024, Aveanna Healthcare (AVAH) reported revenue of $504.96 million, up 7% over the same period last year. EPS came in at $0.01, compared to -$0.02 in the year-ago quarter.The reported revenue compares to the Zacks Consensus Estimate of $494.02 million, representing a surprise of +2.22%. The company delivered an EPS surprise of +150.00%, with the consensus EPS estimate being -$0.02.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- ...

Aveanna Healthcare (AVAH) came out with quarterly earnings of $0.01 per share, beating the Zacks Consensus Estimate of a loss of $0.02 per share. This compares to loss of $0.02 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 150%. A quarter ago, it was expected that this home health care services provider would post a loss of $0.05 per share when it actually produced a loss of $0.03, delivering a surprise of 40%.Over the last ...

Financial Highlights and Outlook [Second Quarter 2024 Financial Highlights](index=1&type=section&id=Second%20Quarter%202024%20Financial%20Highlights) Aveanna's Q2 2024 revenue grew 7.0% to $505.0M, with Adjusted EBITDA up 27.3% to $45.6M, though net income declined Q2 2024 Key Financial Metrics | Metric | Q2 2024 | Change vs. Q2 2023 | | :--- | :--- | :--- | | Revenue | $505.0 million | +7.0% | | Gross Margin | $158.3 million | +1.9% | | Net Income | $13.9 million | -45.7% | | Adjusted Net Income | $2.5 million | +$6.6 million | | Adjusted EBITDA | $45.6 million | +27.3% | [Management Commentary](index=1&type=section&id=Management%20Commentary) Management attributes strong Q2 results to strategic transformation, driven by payor partnerships, caregiver investments, and cost reductions - CEO Jeff Shaner highlighted that the **7.0% revenue** and **27.3% Adjusted EBITDA growth** confirm the success of the company's strategic transformation and its focus on being a value-based homecare provider[2](index=2&type=chunk) - CFO Matt Buckhalter emphasized leveraging growth through strategic cost reductions, lower overhead, and successes in the preferred payor strategy and Government Affairs rate improvements[8](index=8&type=chunk) [Revised Full Year 2024 Guidance](index=3&type=section&id=Revised%20Full%20Year%202024%20Guidance) Aveanna raised full-year 2024 guidance, projecting revenue over $1,985M and Adjusted EBITDA exceeding $158M after strong Q2 Updated Full Year 2024 Guidance | Metric | New Guidance | Prior Guidance | | :--- | :--- | :--- | | Revenue | > $1,985 million | > $1,970 million | | Adjusted EBITDA | > $158 million | > $150 million | - The company is not providing guidance on net income due to the volatility of certain inputs, such as fair value adjustments for interest rate swaps and caps[9](index=9&type=chunk) Detailed Financial Results [Consolidated Results of Operations](index=1&type=section&id=Consolidated%20Results%20of%20Operations) H1 2024 revenue grew 6.1% to $995.6M, shifting from a net loss to $2.7M net income, with Adjusted EBITDA up 25.2% to $80.5M [Three-Month Period Ended June 29, 2024](index=1&type=section&id=Three-Month%20Period%20Ended%20June%2029%2C%202024) Q2 2024 revenue rose 7.0% to $505.0M, driven by PDS and MS segments, though gross margin percentage declined and net income fell to $13.9M Q2 2024 vs Q2 2023 Consolidated Results | Metric | Q2 2024 | Q2 2023 | Change | | :--- | :--- | :--- | :--- | | Revenue | $505.0M | $471.9M | +7.0% | | Gross Margin | $158.3M | $155.3M | +1.9% | | Net Income | $13.9M | $25.6M | -45.7% | | Diluted EPS | $0.07 | $0.13 | -46.2% | | Adjusted EBITDA | $45.6M | $35.9M | +27.3% | [Six-Month Period Ended June 29, 2024](index=3&type=section&id=Six-Month%20Period%20Ended%20June%2029%2C%202024) H1 2024 revenue grew 6.1% to $995.6M, led by PDS and MS, achieving $2.7M net income from a prior loss, with Adjusted EBITDA up 25.2% H1 2024 vs H1 2023 Consolidated Results | Metric | H1 2024 | H1 2023 | Change | | :--- | :--- | :--- | :--- | | Revenue | $995.6M | $938.4M | +6.1% | | Gross Margin | $304.1M | $299.7M | +1.5% | | Net Income (Loss) | $2.7M | ($6.4M) | N/A | | Diluted EPS | $0.01 | ($0.03) | N/A | | Adjusted EBITDA | $80.5M | $64.3M | +25.2% | [Segment Performance](index=1&type=section&id=Segment%20Performance) PDS was the primary growth driver in Q2 and H1 2024, with MS also strong, while HHH saw slight revenue decline but significant gross margin improvement [Q2 2024 Segment Performance](index=1&type=section&id=Q2%202024%20Segment%20Performance) Q2 2024 PDS revenue grew 8.0% to $407.9M, MS revenue increased 9.3% to $42.5M, and HHH revenue declined 1.4% but improved gross margin Q2 2024 Revenue by Segment (vs Q2 2023) | Segment | Q2 2024 Revenue | YoY Change | | :--- | :--- | :--- | | Private Duty Services (PDS) | $407.9M | +8.0% | | Home Health & Hospice (HHH) | $54.6M | -1.4% | | Medical Solutions (MS) | $42.5M | +9.3% | [H1 2024 Segment Performance](index=3&type=section&id=H1%202024%20Segment%20Performance) H1 2024 PDS revenue grew 7.0% to $802.9M, MS revenue increased 9.6% to $83.5M, and HHH revenue declined 2.1% but expanded gross margin H1 2024 Revenue by Segment (vs H1 2023) | Segment | H1 2024 Revenue | YoY Change | | :--- | :--- | :--- | | Private Duty Services (PDS) | $802.9M | +7.0% | | Home Health & Hospice (HHH) | $109.2M | -2.1% | | Medical Solutions (MS) | $83.5M | +9.6% | Liquidity and Capital Resources [Liquidity, Cash Flow, and Debt](index=3&type=section&id=Liquidity%2C%20Cash%20Flow%2C%20and%20Debt) As of June 29, 2024, Aveanna had $47.7M cash, $1,480.2M total debt, and $221.2M in available liquidity, with H1 2024 free cash flow at $(12.4)M - As of June 29, 2024, the company had total liquidity of approximately **$268.9 million**, comprising **$47.7M cash**, **$53.0M securitization facility capacity**, and **$168.2M revolver capacity**[7](index=7&type=chunk) Indebtedness as of June 29, 2024 | Instrument | Amount (in thousands) | | :--- | :--- | | 2021 Extended Term Loan | $895,150 | | Second Lien Term Loan | $415,000 | | Securitization Facility | $170,000 | | **Total Indebtedness** | **$1,480,150** | Cash Flow Summary (Six Months Ended June 29, 2024) | Cash Flow Item | Amount (in thousands) | | :--- | :--- | | Net cash used in operating activities | $(10,163) | | Net cash used in investing activities | $(2,577) | | Net cash provided by financing activities | $16,459 | | **Free Cash Flow** | **$(12,363)** | - The company utilizes interest rate swaps and caps to hedge its interest rate exposure on a significant portion of its variable rate debt[7](index=7&type=chunk) Non-GAAP Financial Measures [Definitions and Reconciliations](index=4&type=section&id=Definitions%20and%20Reconciliations) The company utilizes non-GAAP measures like Adjusted EBITDA and Free Cash Flow to assess performance, providing detailed reconciliations for these adjusted metrics - **Adjusted EBITDA** is a key metric used by management, defined as EBITDA adjusted for items such as goodwill impairments, share-based compensation, acquisition costs, and restructuring costs[11](index=11&type=chunk) - **Field Contribution** is a non-GAAP measure defined as gross margin less branch and regional administrative expenses, used to assess the performance of core field operations[14](index=14&type=chunk) Reconciliation of Net Income to Adjusted EBITDA (Q2 2024) | (in thousands) | Q2 2024 | | :--- | :--- | | Net Income | $13,906 | | Interest, Taxes, D&A | $32,424 | | **EBITDA** | **$46,330** | | Adjustments | $(683) | | **Adjusted EBITDA** | **$45,647** | Reconciliation of Net Income to Adjusted Net Income (Q2 2024) | (in thousands) | Q2 2024 | | :--- | :--- | | Net Income | $13,906 | | Adjustments (pre-tax) | $(10,610) | | Tax Impact of Adjustments | $(824) | | **Adjusted Net Income** | **$2,472** |

Core Viewpoint - Wall Street analysts expect Aveanna Healthcare to report a quarterly loss of $0.02 per share, indicating no change from the previous year, with revenues projected at $494.02 million, reflecting a 4.7% increase year-over-year [1] Group 1: Earnings Estimates - The consensus EPS estimate for the upcoming quarter has remained unchanged over the past 30 days, indicating analysts' reassessment of their projections [1] - Changes in earnings estimates are crucial for predicting investor reactions to the stock [1] Group 2: Revenue Projections - Analysts predict 'Revenue- PDS' will reach $396.11 million, representing a 4.9% increase from the year-ago quarter [2] - The estimate for 'Revenue- MS' is projected at $40.88 million, indicating a 5.2% increase year-over-year [2] - 'Revenue- HHH' is estimated at $55.25 million, suggesting a slight decline of 0.3% compared to the prior-year quarter [2] Group 3: Stock Performance - Aveanna's shares have returned +46.6% over the past month, contrasting with a -5.9% change in the Zacks S&P 500 composite [3] - Aveanna holds a Zacks Rank 3 (Hold), indicating expected performance in line with the overall market [3]

ATLANTA, July 18, 2024 (GLOBE NEWSWIRE) -- Aveanna Healthcare Holdings Inc. ("Aveanna") (NASDAQ:AVAH) today announced that the company will release its second quarter results before the market open on Thursday, August 8, 2024, to be followed by a conference call at 10:00 a.m. (Eastern Time) on the same day. The conference call can be accessed live over the phone by dialing 1-877-407-0789 or for international callers, 1-201-689-8562. A replay will be available two hours after the call and can be accessed by ...