How did PNTG's Q4 earnings surprise investors?

The Pennant Group (PNTG) delivered a strong Q4 2024 earnings report, surpassing investor expectations in several key metrics: 1. **Revenue Growth**: PNTG reported a substantial increase in full-year consolidated revenue, which rose by $150.3 million or 27.6% to reach $695.2 million. This outperformance was driven by significant growth in the Home Health and Hospice segment, which saw a 31.7% increase in full-year revenue. 2. **Earnings Per Share (EPS) Performance**: The company reported an adjusted EPS of $0.24 for Q4 2024, contributing to a full-year adjusted EPS of $0.94. This full-year EPS exceeded their guidance midpoint, indicating strong operational performance. 3. **Adjusted Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) Growth**: PNTG also reported a 30.9% increase in adjusted EBITDA, reaching $53.3 million. This improvement underscores enhanced operational efficiency and profitability. 4. **Segment Performance**: The Home Health and Hospice segment experienced remarkable growth, with Q4 revenue reaching $142 million, a 32.9% increase over the prior year quarter. Medicare admissions surged by 40.9%, and home health admissions increased by 30.1%. 5. **Strategic Acquisitions**: PNTG’s strategic acquisitions, including the $80 million purchase of Signature Healthcare at Home, have bolstered market presence and financial health. Overall, PNTG's Q4 performance exceeded investor expectations due to robust revenue growth, strong EPS performance, significant EBITDA improvement, and successful strategic acquisitions. These factors combined to deliver a robust financial report that likely surprised and pleased investors.