Investing.com -- Shares of Aveanna Healthcare Holdings Inc. (NASDAQ: AVAH) surged 35% following the announcement of its fourth quarter and full year 2024 financial results, which exceeded analyst expectations and provided a positive outlook for 2025.

The company reported a fourth-quarter earnings per share (EPS) of $0.05, which was $0.05 better than the analyst estimate of $0.00. Revenue for the quarter was $519.9 million, surpassing the consensus estimate of $499.07 million and marking an 8.6% increase compared to the same quarter last year. The positive results were driven by substantial growth across its segments, particularly in Private Duty Services.

For the full year 2025, Aveanna Healthcare anticipates revenues to be between $2.1 and $2.12 billion, aligning closely with the consensus estimate of $2.11 billion. The company’s Adjusted EBITDA for the fourth quarter of 2024 showed a significant increase of 42.8% compared to the fourth quarter of 2023, reaching $55.2 million.

The company’s CEO, Jeff Shaner, highlighted the transformational year for Aveanna, with the fourth quarter reflecting strong operating and financial results. He praised the dedication of the Aveanna team and outlined the company’s strategy for 2025, which focuses on enhancing partnerships and leveraging their care platform to deliver cost-effective, high-quality care at home.

Aveanna’s revenue for the fiscal year ended December 28, 2024, was reported at $2,024.5 million, a 6.8% increase from the previous year. The company also managed to turn around its net income position, reporting $29.2 million in net income for the fourth quarter of 2024 compared to a net loss of $25.7 million for the same period in 2023.

The company’s CFO, Matt Buckhalter, expressed satisfaction with the revenue growth and Adjusted EBITDA increase, attributing the success to strategic cost reductions, preferred payor strategy, and improved rates from government affairs efforts. He also emphasized the positive operating cash flow and free cash flow, which underscore the business’s ongoing strength.

As of December 28, 2024, Aveanna had a solid liquidity position with cash of $84.3 million and significant borrowing capacity under various facilities. The company has also hedged its interest rate exposure, providing further financial stability.

Investors responded favorably to the robust financial performance and the company’s forward-looking guidance, which suggests continued growth and profitability for the upcoming fiscal year.

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