Aveanna Healthcare Holdings Inc. (AVAH) experienced a significant pre-market decline of 5.17% on Thursday, as investors reacted to the company's latest financial results and outlook.
The home care provider reported strong fourth-quarter 2025 results, with revenue of $662.5 million beating the IBES estimate of $645.5 million, representing a 27.4% increase year-over-year. Adjusted EBITDA climbed 54% to $85 million, driven by strength across all operating segments, particularly in the PDS division.
However, the stock's decline appears driven by the company's maintained full-year 2026 revenue guidance of $2.54 billion to $2.56 billion, which is 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 disappointed market expectations, leading to the pre-market sell-off.