PNTG - Pennant Group drags home healthcare providers after a challenging Q3
The Pennant Group (PNTG -22.4%) has led a slump in providers of home health care services after the company slashed its full-year outlook due to the COVID-19 Delta variant and preliminary Q3 results. CEO Daniel Walker attributed the underperformance to “a sharp rise in COVID-19 cases and ongoing labor challenges,” which, according to him, hurt the momentum the company accomplished during Q2 2021. Elaborating on staffing issues, Walker noted: “During the third quarter, the labor challenges experienced throughout the year were exacerbated as COVID-19 cases rose sharply, leading to further wage pressure, increased overtime and greater use of agency and registry staffing.” A rise in staff quarantine and a decline in elective procedures, especially in a few key markets which reimposed a temporary halt for such procedures, impacted the home health admissions, Walker said. Pennant’s (NASDAQ:PNTG) rivals for home healthcare are also trading lower too, including Addus HomeCare (ADUS -4.2%), The Ensign
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Pennant Group drags home healthcare providers after a challenging Q3