Aveanna Healthcare Holdings Inc. (AVAH) saw its shares plummet 6.63% during intraday trading on Thursday, as investor sentiment turned negative following the company's latest financial update.
The home care provider reported robust fourth-quarter 2025 results, with revenue rising 27.4% year-over-year to $662.5 million, beating the IBES estimate of $645.5 million. Adjusted EBITDA also climbed 54% to $85 million, driven by strength across all operating segments, particularly in the PDS division.
However, the stock's sharp decline was triggered by the company's maintained full-year 2026 revenue guidance of $2.54 billion to $2.56 billion, which sits at the low end of the FactSet consensus estimate of $2.56 billion. Despite the strong quarterly performance, this guidance suggests a more conservative growth outlook that failed to meet market expectations, leading to the sell-off.