Genesis HealthCare (NASDAQ:GEN) shares fell more than 7% intra-day today despite the company reporting its Q1 earnings results, with EPS of $0.46 coming in better than the Street estimate of $0.44. Revenue was $948 million, compared to the Street estimate of $940 million.
According to the analysts at RBC Capital, though the macro and net adds remain a challenge, management remains bullish towards long-term targets as they try to control what they can. As such, management’s posture was confident around expanding ARPU and improving retention over the next several quarters.
Cost synergies around Avast are being recognized at an accelerated pace with 2/3 of the $300 million targeted to exit 2024 achieved at this point and any additional savings slated to be reinvested to drive growth.