Will Lower PDS Margin Affect Aveanna Healthcare's Q2 Earnings?

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For full-year 2026, the Zacks Consensus Estimate for Aveanna Healthcare’s revenues is pegged at $2.65 billion, implying a rise of 8.8% year over year. The consensus mark for 2026 earnings per share is pegged at 73 cents, indicating a jump of 21.7% on a year-over-year basis.

Aveanna Healthcare beat the consensus estimate for earnings in each of the trailing four quarters, with the average surprise being 129.4%, as you can see below.

Q2 Earnings Whispers for AVAH

Our proven model does not conclusively predict an earnings beat for the company this time around as well. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) increases the odds of an earnings beat. That’s not the case here.

AVAH has an Earnings ESP of 0.00% and carries a Zacks Rank #2. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

You can see the complete list of today’s Zacks #1 Rank stocks here.

What’s Shaping AVAH’s Q2 Results?

The Zacks Consensus Estimate for revenues from the PDS segment indicates 9.1% year-over-year growth. AVAH is expected to have witnessed a 9.5% increase in hours, while the revenue rate is likely to have declined 0.4% from the year-ago level.

Gross margin from the PDS segment is expected to have declined 8.5% year over year. Higher cost of revenues are also expected to have increased total expenses, partly offset by lower corporate expenses. These factors are likely to have weighed on the bottom line.

The consensus estimate for the HHH unit’s revenues signals a 9.5% increase from the year-ago period. Unique patients served (UPS) are expected to have increased 3.9%, while the revenue rate is likely to have risen 2.5%. Gross margin from the segment is expected to have increased 7.7%.

Revenues from the MS segment are expected to have increased 6.5% year over year in the second quarter. Gross margin from the segment is also likely to have improved 5.1%.

How Are Other Medical Companies Performing This Quarter?

Companies in the broader Medical space, like Encompass Health Corporation EHC, The Ensign Group, Inc. ENSG and Universal Health Services, Inc. UHS, have already reported their results for the June quarter, and here’s how they have performed.

Encompass Health reported second-quarter adjusted EPS of $1.55, which beat the Zacks Consensus Estimate by 4.7% and increased 10.7% year over year. Its results were primarily driven by strong growth in net patient revenue per discharge, supported by solid discharge volumes and contributions from capacity expansion. However, the upside was partly offset by EHC’s elevated operating expenses.

Ensign reported second-quarter 2026 adjusted EPS of $1.92, which beat the Zacks Consensus Estimate by 6.7% and improved 20.8% year over year. ENSG’s strong results were driven by higher occupancy, improved patient days and contributions from acquired and transitioning facilities, along with growth in rental income. The positives were partly offset by higher expenses.

Universal Health Services reported second-quarter 2026 adjusted EPS of $5.98, which beat the Zacks Consensus Estimate by 5.7%. The bottom line rose 10.1% year over year. The strong quarterly results were driven by healthy revenue growth across both the Acute Care and Behavioral Health segments. Higher adjusted admissions, increased patient days and improved unit revenues on a same-facility basis supported performance in both businesses. However, the upside was partly offset by UHS’ elevated operating costs.

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This article originally published on Zacks Investment Research (zacks.com).

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