PACS Group, Inc. (PACS) delivered a quarter that had investors scrambling to hit the buy button Thursday, with shares rocketing higher after the healthcare company posted results that thoroughly beat Wall Street's expectations.
The Numbers That Matter: PACS brought in roughly $1.35 billion in revenue for the third quarter, crushing analyst estimates of $975.65 million. That's not a modest beat—it's a nearly 40% surprise to the upside. Earnings per share came in at 32 cents, just shy of the 33-cent consensus estimate, but clearly nobody was too bothered by that penny miss.
The market certainly wasn't complaining. Shares were trading up more than 55% at the time of writing, according to market data.
Beyond the Headline Numbers: The company's year-to-date revenue reached $3.93 billion, marking a 36.4% increase compared to the same period last year. What's particularly impressive is the operational execution: 68% of PACS's skilled nursing portfolio earned a four- or five-star CMS Quality Measure Star rating, while mature facilities hit 94.8% occupancy. For context, the industry average sits at 79%—that's a significant competitive advantage.
PACS also finished the quarter with $355.7 million in cash and cash equivalents, up from December levels. In other words, they're growing revenue, maintaining quality, and building their cash position simultaneously.
Looking ahead, the company issued guidance for full-year 2025, projecting revenue between $5.25 billion and $5.35 billion, with adjusted EBITDA expected in the $480 million to $490 million range.
"Since its founding, PACS has been focused on its mission to revolutionize the delivery, leadership, and quality of post-acute care nationally. Our strong third quarter and year-to-date results demonstrate the underlying strength of our business model and the relentless execution of our team to deliver on our mission," said Jason Murray, PACS's CEO.
RBC Capital maintained its Outperform rating on PACS Group following the results and raised its price target to $33.
Price Action: PACS Group shares were up 56.06%, trading at $26.29 at last check.
