Avianna Healthcare (AVAH) came out with quarterly earnings of $0.02 per share, beating the Zacks Consensus Estimate of a loss of $0.01 per share. This compares to a loss of $0.03 per share a year ago. These figures have been adjusted for non-recurring items.
This quarterly report represents a 300% earnings surprise. A quarter ago, it was expected that this home health care services provider would post a loss of $0.02 per share when it actually produced earnings of $0.01, delivering a surprise 150% return.
The company has surpassed consensus EPS estimates four times over the last four quarters.
Avianna, which belongs to the Zacks Medical – Ambulatory & Home Healthcare industry, posted revenues of $509.02 million for the quarter ended September 2024, beating the Zacks Consensus Estimate by 2.67%. This compares to year-ago revenue of $478.01 million. The company has surpassed consensus revenue estimates four times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's comments on the earnings call.
Avianna stock is up about 79.5% since the beginning of the year, compared to a 24.3% gain for the S&P 500.
Avianna has outperformed the market so far this year, but the question that comes to investors' minds is: What's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between short-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Aveanna's estimate revisions have been mixed ahead of this earnings release. Although the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status corresponds to a Zacks Rank #3 (Hold) for the stock. Therefore, the stock is expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the next few quarters and the current fiscal year change going forward. The current consensus EPS estimate is calling for breakeven on next year's revenue of $499.84 Million and -$0.03 on current year's revenue of $1.99 Billion.
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