ADDISON, Texas - Concentra Group Holdings Parent, Inc. (NYSE: CON), a leader in occupational health services with a market capitalization of $2.84 billion, has announced preliminary financial results for the fourth quarter and full year of 2024 and has signed an agreement to acquire Nova Medical (TASE:PMCN) Centers. According to InvestingPro data, the company maintains a GREAT financial health score of 3.27, suggesting strong operational stability. This move is expected to extend Concentra's reach in the occupational health sector and bolster its service offerings.
For the fourth quarter of 2024, Concentra reported revenue of $465 million, marking a 5.5% increase from the same period in the previous year. However, net income is projected to be between $20.6 million and $22.6 million, a decrease from $28.9 million in the fourth quarter of 2023. Despite a 2.1% dip in daily patient visits, revenue per visit rose by 5.8%, and the company's Adjusted EBITDA saw a 13.6% rise to $77.5 million.
The full year results for 2024 reflect a revenue increase of 3.4% to $1.9 billion and an Adjusted EBITDA improvement of 4.3% to $376.9 million. However, net income is expected to range from $169.7 million to $171.7 million, down from $184.7 million in 2023. The company also reported a decrease in daily patient visits by 2.0%, but an increase in revenue per visit of 4.5%.
The acquisition of Nova Medical Centers, valued at $265 million, is poised to close in the first quarter of 2025, subject to customary closing conditions. Concentra plans to finance the transaction through cash, available credit, and new debt financing. With Nova's 67 centers across five states, Concentra aims to expand its occupational health services footprint significantly.
Looking forward to 2025, Concentra expects to generate approximately $2.1 billion in revenue and achieve an Adjusted EBITDA in the range of $410 million to $425 million. Capital expenditures are projected to be between $80 million and $90 million, with a net leverage ratio of approximately 3.5x.
These financial estimates are based on management's current assessment and have not been audited or adjusted. As such, the final results for the fourth quarter of 2024 could materially differ from these preliminary figures. InvestingPro analysis reveals that three analysts have recently revised their earnings estimates downward for the upcoming period, while the stock currently trades at a P/E ratio of 12.32. Discover more insights and detailed analysis in InvestingPro's comprehensive Research Report, part of their coverage of over 1,400 US equities.
The company will further discuss its financial results, the acquisition, and its 2025 business outlook in a conference call scheduled for Thursday, January 23, 2025. With analyst price targets ranging from $24 to $30, and the stock currently trading slightly above its InvestingPro Fair Value, investors seeking deeper insights can access exclusive financial metrics and expert analysis through InvestingPro's advanced platform.
This news is based on a press release statement from Concentra Group Holdings Parent, Inc.
In other recent news, Concentra Group Holdings Parent, Inc. has made several significant adjustments to its executive compensation structure. The company's Human Capital and Compensation Committee approved new base salaries for top executives, including CEO William K. Newton and CFO Matthew T. DiCanio, as part of its 2025 financial planning. These executives are also eligible to participate in the company's incentive plans, which are designed to align the interests of the leadership with those of the shareholders and the overall performance of the company.
Following this, Concentra Group made strategic changes to its executive compensation and incentives by awarding restricted shares to several top executives under its 2024 Equity Incentive Plan. This move aims to incentivize long-term performance and retention. Additionally, the company recently amended the employment agreement with its President and CFO, Matthew T. DiCanio, enhancing his compensation structure and severance benefits.
In the realm of market analysis, Concentra Group's stock was upgraded from Neutral to Buy by BofA Securities, following the completion of its spin-off from Select Medical (NYSE:SEM). Several other major financial firms, including Truist Securities, Wells Fargo (NYSE:WFC), Mizuho (NYSE:MFG) Securities, and Goldman Sachs (NYSE:GS), initiated coverage with positive ratings, highlighting the company's growth potential and unique market position. These are some of the recent developments impacting Concentra Group Holdings Parent, Inc.
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