PACS Group Stock Soars Premarket On Completion Of Audit Committee Probe, Upbeat Full-Year Guidance

The company said the committee's recommendations have been or are being implemented.

• The company said the probe identified issues in its financial reporting and that it had restated its previously issued financial statements.
• PACS now expects core profit for the full year to be in the range of $480 million to $490 million, above an $472.72 million expected by analysts. 
• Revenue for the full year is expected to be in the range of $5.25 billion to $5.35 billion.

Shares of PACS Group, Inc. (PACS) jumped 53% in the pre-market session on Thursday after the company said that an audit committee had completed its independent investigation into the allegations made by short seller Hindenburg Research in its report in November 2024.

The company said that the recommendations by the committee have been or are being implemented. The company said that the probe identified issues within its financial reporting and restated its previously issued financial statements, including a $46.1 million reduction in the revenue reported for the three-month period ended June 30, 2024.

“...today is the start of a new chapter for PACS,” said CEO Jason Murray in a call with analysts on Wednesday while reiterating efforts to build trust with stakeholders.

Outlook For The Year Ahead

The company now expects core profit for the full year to be in the range of $480 million to $490 million, above the $472.72 million expected by analysts, according to data from Fiscal AI.

Revenue for the full year is expected to be in the range of $5.25 billion to $5.35 billion, up from an expected $4.6 billion.

Q3 Earnings

The company reported third quarter revenue of $1.34 billion, an increase of 31.0% over prior year, and above an estimated $949.48 million.

Core profit for the three months was $131.5 million, above an estimated $85.90 million.

PACS Group is a holding company investing in post-acute healthcare facilities. Its units operate 320 care facilities across 17 states.

How Did Stocktwits Users React?

On Stocktwits, retail sentiment around PACS stayed within the ‘extremely bullish’ territory over the past 24 hours while message volume remained at ‘extremely high’ levels. However, retail sentiment around PACS hit its highest levels this year on Thursday.

PACS stock is up by 28% this year and down by about 2% over the past 12 months. 

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