The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let’s take a look at how AdaptHealth (NASDAQ:AHCO) and the rest of the senior health, home health & hospice stocks fared in Q3.
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 2.7% since the latest earnings results.
AdaptHealth (NASDAQ:AHCO)
Founded in 2012, AdaptHealth Corp. (NASDAQ:AHCO) provides home medical equipment and related services, specializing in respiratory therapy, diabetes management supplies, mobility products.
AdaptHealth reported revenues of $805.9 million, flat year on year. This print was in line with analysts’ expectations, but overall, it was a mixed quarter for the company with an impressive beat of analysts’ EPS estimates but full-year revenue guidance slightly missing analysts’ expectations.
Suzanne Foster, Chief Executive Officer of AdaptHealth, stated, “I continue to be optimistic about the road ahead. We have identified growth opportunities, we are assembling a high performing team and investing in areas that allow us to serve even more patients in their homes.”
AdaptHealth delivered the slowest revenue growth and weakest full-year guidance update of the whole group. Unsurprisingly, the stock is down 10% since reporting and currently trades at $9.13.
Read our full report on AdaptHealth here, it’s free.
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, outperforming analysts’ expectations by 5%. The business had an exceptional quarter with a solid beat of analysts’ EPS estimates and full-year revenue guidance beating analysts’ expectations.
However, the results were likely priced into the stock as it’s traded sideways since reporting. Shares currently sit at $30.61.
Is now the time to buy Option Care Health? Access our full analysis of the earnings results here, it’s free.
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. The stock is down 9% since the results and currently trades at $555.61.
Read our full analysis of Chemed’s results here.
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. This number beat analysts’ expectations by 6.8%. Overall, it was a strong quarter as it also recorded full-year revenue guidance exceeding analysts’ expectations.
BrightSpring Health Services achieved the biggest analyst estimates beat and highest full-year guidance raise among its peers. The stock is up 48.1% since reporting and currently trades at $22.18.
Read our full, actionable report on BrightSpring Health Services here, it’s free.
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 result was in line with analysts’ expectations. More broadly, it was a softer quarter as it logged a significant miss of analysts’ EPS estimates and EBITDA guidance for next quarter missing analysts’ expectations.
The stock is down 17.4% since reporting and currently trades at $5.34.
Read our full, actionable report on Brookdale here, it’s free.
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