PACS Group (PACS) shares experienced a significant 24-hour plunge of 5.13% on Thursday, despite the company reporting better-than-expected third-quarter results and raising its full-year guidance. This sharp decline comes as a surprise following the stock's impressive 55% surge earlier in the day.
The healthcare company reported third-quarter revenue of $1.34 billion, surpassing analysts' expectations of $1.11 billion. While earnings per share came in at $0.32, slightly below the anticipated $0.45, PACS Group demonstrated strong year-over-year growth with revenue up 30% compared to the same period last year. The company also raised its full-year 2025 revenue guidance to a range of $5.25 billion to $5.35 billion, well above the $4.87 billion analysts were expecting.
Despite these positive results, the stock's late-day reversal suggests investors may be taking profits after the initial surge or reassessing the company's valuation in light of broader market conditions. The unexpected downturn could also be influenced by the general market sentiment, as major indices like the Nasdaq Composite and S&P 500 also experienced significant declines in late trading. As the market digests PACS Group's earnings report and future outlook, investors will be closely watching for any further developments that might explain this sharp reversal in stock price.
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