Earnings results often indicate what direction a company will take in the months ahead. With Q3 behind us, let’s have a look at Option Care Health (NASDAQ:OPCH) and its peers.
The senior health, home care, and hospice care industries provide essential services to aging populations and patients with chronic or terminal conditions. These companies benefit from stable, recurring revenue driven by relationships with patients and families that can extend many months or even years. However, the labor-intensive nature of the business makes it vulnerable to rising labor costs and staffing shortages, while profitability is constrained by reimbursement rates from Medicare, Medicaid, and private insurers.
Looking ahead, the industry is positioned for tailwinds from an aging population, increasing chronic disease prevalence, and a growing preference for personalized in-home care. Advancements in remote monitoring and telehealth are expected to enhance efficiency and care delivery. However, headwinds such as labor shortages, wage inflation, and regulatory uncertainty around reimbursement could pose challenges. Investments in digitization and technology-driven care will be critical for long-term success.
The 7 senior health, home health & hospice stocks we track reported a mixed Q3. As a group, revenues beat analysts’ consensus estimates by 1.8%.
While some senior health, home health & hospice stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 3.3% since the latest earnings results.
Best Q3: Option Care Health (NASDAQ:OPCH)
Founded in 1979, Option Care Health (NASDAQ:OPCH) delivers home and alternate site infusion therapy services, specializing in the administration of medications and care for patients with chronic and acute conditions.Option Care Health reported revenues of $1.28 billion, up 17% year on year. This print exceeded analysts’ expectations by 5%. Overall, it was an exceptional quarter for the company with a solid beat of analysts’ EPS estimates and full-year revenue guidance beating analysts’ expectations.
John C. Rademacher, President and Chief Executive Officer, commented, “Once again, the Option Care Health team continued to perform and to focus on delivering extraordinary care to our patients in the face of several unique challenges in the third quarter as throughout 2024. I am proud of how our team responded to both natural disasters and recovery efforts, along with the strong third quarter financial results. The team remains resilient and focused on executing on our 2024 commitments by providing consistent high-quality care to our patients and reliable partnership to our referral sources.”
The stock is up 4.4% since reporting and currently trades at $31.86.
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BrightSpring Health Services (NASDAQ:BTSG)
Founded in 1974, BrightSpring Health Services (NASDAQ:BTSG) offers home health care, hospice, neuro-rehabilitation, and pharmacy services.BrightSpring Health Services reported revenues of $2.91 billion, up 28.8% year on year, outperforming analysts’ expectations by 6.8%. The business had a strong quarter with full-year revenue guidance exceeding analysts’ expectations.
BrightSpring Health Services delivered the biggest analyst estimates beat and highest full-year guidance raise among its peers. The market seems happy with the results as the stock is up 49.3% since reporting. It currently trades at $22.36.
Weakest Q3: Chemed (NYSE:CHE)
Founded in 1970, Chemed (NYSE:CHE) provides hospice care and plumbing services through its subsidiaries VITAS Healthcare and Roto-Rooter, respectively, focusing on end-of-life care and residential and commercial plumbing solutions.Chemed reported revenues of $606.2 million, up 7.4% year on year, falling short of analysts’ expectations by 1%. It was a disappointing quarter as it posted a miss of analysts’ full-year EPS guidance estimates.
Chemed delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 11.1% since the results and currently trades at $543.02.
The Pennant Group (NASDAQ:PNTG)
Founded in 2019, The Pennant Group (NASDAQ:PNTG) offers senior living and home healthcare services with a focus on skilled nursing and assisted living.The Pennant Group reported revenues of $180.7 million, up 28.9% year on year. This result beat analysts’ expectations by 2.8%. Overall, it was a strong quarter as it also recorded a narrow beat of analysts’ sales volume estimates and a decent beat of analysts’ full-year EPS guidance estimates.
The Pennant Group pulled off the fastest revenue growth among its peers. The stock is down 21.6% since reporting and currently trades at $25.93.
Brookdale (NYSE:BKD)
Founded in 1978, Brookdale Senior Living (NYSE:BKD) offers independent living, assisted living, Alzheimer's and dementia care, rehabilitation, and skilled nursing care.Brookdale reported revenues of $784.2 million, up 3.5% year on year. This print met analysts’ expectations. Zooming out, it was a softer quarter as it logged a significant miss of analysts’ EPS estimates and EBITDA guidance for the next quarter, missing analysts’ expectations.
The stock is down 22.7% since reporting and currently trades at $5.
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This content was originally published on Stock Story
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