Aveanna Healthcare shares jump on strong earnings outlook

Aveanna Healthcare shares surged on Wednesday after the home healthcare provider raised its full-year revenue guidance and reported a narrower-than-expected quarterly loss, defying sector headwinds.

The company, which operates in the U.S. pediatric and adult home health and hospice care markets, said it now expects full-year revenue of $2.1 billion to $2.2 billion, up from its prior guidance of $2.0 billion to $2.1 billion. Aveanna also reported a second-quarter adjusted loss of $0.12 per share, beating analyst estimates of a $0.15 loss.

Analysts attributed the upward revision to improved operational efficiency and stronger-than-anticipated demand for home healthcare services. The company cited higher utilization of its services and better cost management as key drivers behind the improved outlook.

Aveanna’s stock jumped more than 20% in early trading, outpacing broader sector gains. The company’s shares have climbed roughly 40% over the past month, reflecting growing investor confidence in its turnaround strategy.

The home healthcare sector has faced challenges in recent quarters, including labor shortages and reimbursement pressures from government payers. Aveanna’s ability to navigate these headwinds while raising guidance has drawn attention from market participants.

Investors will continue to monitor the company’s execution on cost controls and service expansion as it aims to sustain its positive momentum.

Aveanna Healthcare is listed on the Nasdaq under the ticker AVEH.