Aveanna Healthcare (NASDAQ:AVAH) Issues Quarterly Earnings Results

Key Points

• Aveanna beat quarterly estimates, reporting earnings per share of $0.23 versus the $0.21 consensus and revenue of $695.5 million versus estimates of $679.5 million.
• Third-quarter revenue rose 11.8% year over year to $695.5 million, while adjusted EBITDA increased 25% to $100.1 million. Management raised 2026 revenue guidance to above $2.695 billion and adjusted EBITDA guidance to above $374 million.
• California reimbursement remains uncertain: the state currently views a planned $60 million nursing-rate investment as supplemental funding for only the first half of 2027, and Aveanna says it is seeking a permanent measure.

Aveanna Healthcare (NASDAQ:AVAH - Get Free Report) released its earnings results on Thursday. The company reported $0.23 earnings per share for the quarter, beating the consensus estimate of $0.21 by $0.02, FiscalAI reports. Aveanna Healthcare had a return on equity of 80.70% and a net margin of 10.56%. The firm had revenue of $695.54 million for the quarter, compared to analyst estimates of $679.48 million.

Here are the key takeaways from Aveanna Healthcare's conference call:

• Aveanna reported Q3 revenue of $695.5 million, up 11.8%, and adjusted EBITDA of $100.1 million, up 25% year over year. Management raised 2026 guidance to revenue above $2.695 billion and adjusted EBITDA above $374 million.
• Growth was broad-based, with all three segments reporting higher revenue; Home Health and Hospice grew 15.6%, supported by 19.6% more admissions and 24% more episodes. Management raised its long-term organic growth outlook for Private Duty Services to 5%–6% and Home Health and Hospice to 8%–10%, while reaffirming 8%–10% for Medical Solutions.
• California’s planned $60 million PDN rate investment is currently viewed by the state as a supplemental payment for only the first half of 2027, while Aveanna is advocating for it to become permanent. The company said it will not make meaningful base-wage increases for California nurses until it has more certainty about ongoing reimbursement.
• Year-to-date operating cash flow was $157.5 million and free cash flow was $141.2 million; liquidity totaled $492 million, and the company said substantially all variable-rate debt is hedged through December 2029. Aveanna plans to pursue acquisitions while targeting leverage below 3x in 2027.
• Management expects Q4 to be seasonally choppy around the holidays and noted that Q4 2025 had an extra week, making year-over-year comparisons tougher. It said a mid-$90 million range is a prudent Q4 adjusted EBITDA planning anchor.

Aveanna Healthcare Trading Down 4.6%

Aveanna Healthcare stock traded down $0.61 during mid-day trading on Thursday, hitting $12.48. 2,936,570 shares of the company's stock were exchanged, compared to its average volume of 2,035,561. The firm has a market capitalization of $2.72 billion, a P/E ratio of 10.14, a PEG ratio of 0.81 and a beta of 2.03. Aveanna Healthcare has a fifty-two week low of $5.93 and a fifty-two week high of $14.71. The company has a quick ratio of 1.16, a current ratio of 1.16 and a debt-to-equity ratio of 4.47. The company's 50 day simple moving average is $13.08 and its 200-day simple moving average is $9.43.

Wall Street Analyst Weigh In

A number of brokerages have recently commented on AVAH. Truist Financial upped their price target on Aveanna Healthcare from $11.00 to $15.00 and gave the company a "hold" rating in a research note on Monday, August 24th. BMO Capital Markets increased their price target on shares of Aveanna Healthcare from $10.00 to $14.00 and gave the company an "outperform" rating in a research report on Friday, August 14th. Royal Bank Of Canada lifted their price objective on shares of Aveanna Healthcare from $10.00 to $16.00 and gave the stock an "outperform" rating in a research note on Monday, August 24th. Raymond James Financial reissued a "strong-buy" rating on shares of Aveanna Healthcare in a research note on Thursday. Finally, Wall Street Zen cut shares of Aveanna Healthcare from a "strong-buy" rating to a "buy" rating in a report on Saturday, August 15th. One investment analyst has rated the stock with a Strong Buy rating, six have assigned a Buy rating and four have issued a Hold rating to the company's stock. According to data from MarketBeat, Aveanna Healthcare presently has a consensus rating of "Moderate Buy" and a consensus price target of $14.25.

Insider Activity

In other Aveanna Healthcare news, Director Rodney D. Windley sold 180,000 shares of the stock in a transaction dated Thursday, August 20th. The stock was sold at an average price of $11.50, for a total value of $2,070,000.00. Following the completion of the sale, the director directly owned 2,078,017 shares in the company, valued at $23,897,195.50. This represents a 7.97% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, major shareholder J.H. Whitney Equity Partners V sold 12,496,077 shares of the firm's stock in a transaction dated Thursday, August 20th. The stock was sold at an average price of $11.50, for a total value of $143,704,885.50. Additional details regarding this sale are available in the official SEC disclosure. In the last quarter, insiders sold 48,566,081 shares of company stock valued at $558,509,932. Company insiders own 5.30% of the company's stock.

About Aveanna Healthcare

Aveanna Healthcare Holdings Inc. is a U.S. provider of home-based healthcare services for children and adults with complex medical needs. Its services include private-duty nursing and personal care, home health nursing and therapy, and hospice care, helping patients receive support in their homes and communities. The company also provides medical supplies and related services, including products used for enteral nutrition. Aveanna serves patients and families across multiple states through a network of clinicians, caregivers, and local operations.

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