Home Care Platform Aveanna Healthcare Reports Quarterly Profit, Expects Organic Volume Growth, Enhanced Profitability Into 2025

Core Insights - Aveanna Healthcare Holdings Inc. reported a fourth-quarter adjusted EPS of five cents, a recovery from a loss of two cents in the previous year [1] - The company achieved sales of $519.9 million, representing an 8.6% year-over-year increase, surpassing the consensus estimate of $499.6 million [1] - The revenue growth was driven by increases in the Private Duty Services segment ($38.7 million), Medical Solutions segment ($2 million), and Home Health & Hospice segment ($0.3 million) [1] Financial Performance - Gross margin for the fourth quarter was $171.7 million, or 33% of revenue, compared to $148.4 million, or 31% a year ago [2] - Adjusted EBITDA was $55.2 million, or 10.6% of revenue, for the fourth quarter of 2024, up from $38.7 million, or 8.1% of revenue, for the fourth quarter of 2023 [3] - The company forecasts 2025 revenue between $2.10 billion and $2.12 billion, with adjusted EBITDA expected to be between $190 million and $194 million [3] Strategic Initiatives - Strategic cost reductions have significantly contributed to profitability, along with the success of the preferred payor strategy and improvements in government rates [4] - The company anticipates continued organic volume growth, improved clinical outcomes, and enhanced profitability into 2025 [4] Market Reaction - Aveanna Healthcare Holdings' stock increased by 39.57%, reaching $5.23 at the time of publication [4]