Latest news with #AdaptHealth
Yahoo
14-05-2025
- Business
- Yahoo
We Like The Quality Of AdaptHealth's (NASDAQ:AHCO) Earnings
AdaptHealth Corp.'s (NASDAQ:AHCO) solid earnings announcement recently didn't do much to the stock price. Our analysis suggests that shareholders might be missing some positive underlying factors in the earnings report. This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality. Importantly, our data indicates that AdaptHealth's profit was reduced by US$37m, due to unusual items, over the last year. While deductions due to unusual items are disappointing in the first instance, there is a silver lining. When we analysed the vast majority of listed companies worldwide, we found that significant unusual items are often not repeated. And that's hardly a surprise given these line items are considered unusual. If AdaptHealth doesn't see those unusual expenses repeat, then all else being equal we'd expect its profit to increase over the coming year. That might leave you wondering what analysts are forecasting in terms of future profitability. Luckily, you can click here to see an interactive graph depicting future profitability, based on their estimates. Unusual items (expenses) detracted from AdaptHealth's earnings over the last year, but we might see an improvement next year. Because of this, we think AdaptHealth's earnings potential is at least as good as it seems, and maybe even better! And it's also positive that the company showed enough improvement to book a profit this year, after losing money last year. At the end of the day, it's essential to consider more than just the factors above, if you want to understand the company properly. If you want to do dive deeper into AdaptHealth, you'd also look into what risks it is currently facing. To that end, you should learn about the 2 warning signs we've spotted with AdaptHealth (including 1 which can't be ignored). This note has only looked at a single factor that sheds light on the nature of AdaptHealth's profit. But there are plenty of other ways to inform your opinion of a company. Some people consider a high return on equity to be a good sign of a quality business. While it might take a little research on your behalf, you may find this free collection of companies boasting high return on equity, or this list of stocks with significant insider holdings to be useful. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Yahoo
08-05-2025
- Business
- Yahoo
Q1 Earnings Highs And Lows: AdaptHealth (NASDAQ:AHCO) Vs The Rest Of The Senior Health, Home Health & Hospice Stocks
Earnings results often indicate what direction a company will take in the months ahead. With Q1 behind us, let's have a look at AdaptHealth (NASDAQ:AHCO) 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 strong Q1. As a group, revenues beat analysts' consensus estimates by 2.3%. Thankfully, share prices of the companies have been resilient as they are up 5.1% on average since the latest earnings results. With a network of approximately 680 locations serving patients across all 50 states, AdaptHealth (NASDAQ:AHCO) provides home medical equipment, supplies, and related services to patients with chronic conditions like sleep apnea, diabetes, and respiratory disorders. AdaptHealth reported revenues of $777.9 million, down 1.8% year on year. This print exceeded analysts' expectations by 1.7%. Despite the top-line beat, it was still a slower quarter for the company with a significant miss of analysts' EPS estimates and full-year revenue guidance slightly missing analysts' expectations. 'Amid elevated uncertainty in the external environment, we at AdaptHealth have stayed the course, with a relentless focus on improving our business and providing exceptional service to the 4.2 million patients that depend on us,' said Suzanne Foster, Chief Executive Officer of AdaptHealth. AdaptHealth delivered the slowest revenue growth and weakest full-year guidance update of the whole group. The stock is down 5.3% since reporting and currently trades at $8.24. Read our full report on AdaptHealth here, it's free. Serving approximately 66,000 clients across 22 states with a focus on "dual eligible" Medicare and Medicaid beneficiaries, Addus HomeCare (NASDAQ:ADUS) provides in-home personal care, hospice, and home health services to elderly, chronically ill, and disabled individuals. Addus HomeCare reported revenues of $337.7 million, up 20.3% year on year, falling short of analysts' expectations by 0.6%. The business performed better than its peers, but it was unfortunately a mixed quarter with a narrow beat of analysts' sales volume estimates. The market seems happy with the results as the stock is up 10.2% since reporting. It currently trades at $115. Is now the time to buy Addus HomeCare? Access our full analysis of the earnings results here, it's free. With a network of over 650 communities serving approximately 59,000 residents across 41 states, Brookdale Senior Living (NYSE:BKD) operates senior living communities across the United States, offering independent living, assisted living, memory care, and continuing care retirement communities. Brookdale reported revenues of $813.9 million, up 4% year on year, in line with analysts' expectations. It was a slower quarter as it posted a significant miss of analysts' EPS estimates. As expected, the stock is down 2.7% since the results and currently trades at $6.61. Read our full analysis of Brookdale's results here. Founded in 1974, BrightSpring Health Services (NASDAQ:BTSG) offers home health care, hospice, neuro-rehabilitation, and pharmacy services. BrightSpring Health Services reported revenues of $2.88 billion, up 11.7% year on year. This print beat analysts' expectations by 4.6%. It was an exceptional quarter as it also put up a solid beat of analysts' EPS estimates and full-year revenue guidance exceeding analysts' expectations. BrightSpring Health Services achieved the highest full-year guidance raise among its peers. The stock is up 30.4% since reporting and currently trades at $23.32. Read our full, actionable report on BrightSpring Health Services here, it's free. With a unique business model combining end-of-life care and household services, Chemed (NYSE:CHE) operates two distinct businesses: VITAS, which provides hospice care for terminally ill patients, and Roto-Rooter, which offers plumbing and water restoration services. Chemed reported revenues of $646.9 million, up 9.8% year on year. This number topped analysts' expectations by 0.8%. It was a satisfactory quarter as it also produced a decent beat of analysts' EPS estimates. The stock is down 1.6% since reporting and currently trades at $577.44. Read our full, actionable report on Chemed here, it's free. As a result of the Fed's rate hikes in 2022 and 2023, inflation has come down from frothy levels post-pandemic. The general rise in the price of goods and services is trending towards the Fed's 2% goal as of late, which is good news. The higher rates that fought inflation also didn't slow economic activity enough to catalyze a recession. So far, soft landing. This, combined with recent rate cuts (half a percent in September 2024 and a quarter percent in November 2024) have led to strong stock market performance in 2024. The icing on the cake for 2024 returns was Donald Trump's victory in the U.S. Presidential Election in early November, sending major indices to all-time highs in the week following the election. Still, debates around the health of the economy and the impact of potential tariffs and corporate tax cuts remain, leaving much uncertainty around 2025. Want to invest in winners with rock-solid fundamentals? Check out our Strong Momentum Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate. Join Paid Stock Investor Research Help us make StockStory more helpful to investors like yourself. Join our paid user research session and receive a $50 Amazon gift card for your opinions. Sign up here. 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Yahoo
06-05-2025
- Business
- Yahoo
AdaptHealth (NASDAQ:AHCO) Posts Better-Than-Expected Sales In Q1, Stock Jumps 13.2%
Healthcare services provider AdaptHealth Corp. (NASDAQ:AHCO) beat Wall Street's revenue expectations in Q1 CY2025, but sales fell by 1.8% year on year to $777.9 million. On the other hand, the company's full-year revenue guidance of $3.25 billion at the midpoint came in 0.5% below analysts' estimates. Its GAAP loss of $0.05 per share was significantly below analysts' consensus estimates. Is now the time to buy AdaptHealth? Find out in our full research report. AdaptHealth (AHCO) Q1 CY2025 Highlights: Revenue: $777.9 million vs analyst estimates of $764.8 million (1.8% year-on-year decline, 1.7% beat) EPS (GAAP): -$0.05 vs analyst estimates of $0.03 (significant miss) Adjusted EBITDA: $127.9 million vs analyst estimates of $127.3 million (16.4% margin, in line) The company dropped its revenue guidance for the full year to $3.25 billion at the midpoint from $3.29 billion, a 1.2% decrease EBITDA guidance for the full year is $685 million at the midpoint, in line with analyst expectations Operating Margin: 3%, down from 6.4% in the same quarter last year Free Cash Flow was -$58,000 compared to -$38.86 million in the same quarter last year Market Capitalization: $1.17 billion 'Amid elevated uncertainty in the external environment, we at AdaptHealth have stayed the course, with a relentless focus on improving our business and providing exceptional service to the 4.2 million patients that depend on us,' said Suzanne Foster, Chief Executive Officer of AdaptHealth. Company Overview With a network of approximately 680 locations serving patients across all 50 states, AdaptHealth (NASDAQ:AHCO) provides home medical equipment, supplies, and related services to patients with chronic conditions like sleep apnea, diabetes, and respiratory disorders. Sales Growth Examining a company's long-term performance can provide clues about its quality. Any business can have short-term success, but a top-tier one grows for years. Thankfully, AdaptHealth's 40.1% annualized revenue growth over the last five years was incredible. Its growth beat the average healthcare company and shows its offerings resonate with customers. AdaptHealth Quarterly Revenue We at StockStory place the most emphasis on long-term growth, but within healthcare, a half-decade historical view may miss recent innovations or disruptive industry trends. AdaptHealth's recent performance shows its demand has slowed significantly as its annualized revenue growth of 3.9% over the last two years was well below its five-year trend. AdaptHealth Year-On-Year Revenue Growth This quarter, AdaptHealth's revenue fell by 1.8% year on year to $777.9 million but beat Wall Street's estimates by 1.7%.
Yahoo
28-04-2025
- Business
- Yahoo
1 Healthcare Stock Worth Your Attention and 2 to Turn Down
Personal health and wellness is one of the many secular tailwinds for healthcare companies. But financial performance has lagged recently as players offloaded surplus COVID inventories in 2023 and 2024, a headwind for overall demand. The result? Over the past six months, the industry has tumbled by 11.7%. This performance was worse than the S&P 500's 5.1% loss. Despite the lackluster result, a few diamonds in the rough can produce earnings growth no matter what, and we started StockStory to help you find them. With that said, here is one healthcare stock poised to generate sustainable market-beating returns and two that may face trouble. Market Cap: $2.04 billion With a network of over 250 facilities serving patients in 38 states and Puerto Rico, Acadia Healthcare (NASDAQ:ACHC) operates facilities providing mental health and substance use disorder treatment services across the United States. Why Are We Cautious About ACHC? Flat sales over the last five years suggest it must find different ways to grow during this cycle Disappointing admissions over the past two years imply it may need to invest in improvements to get back on track Free cash flow margin shrank by 38.5 percentage points over the last five years, suggesting the company is consuming more capital to stay competitive At $22.38 per share, Acadia Healthcare trades at 6.6x forward price-to-earnings. Read our free research report to see why you should think twice about including ACHC in your portfolio, it's free. Market Cap: $1.13 billion With a network of approximately 680 locations serving patients across all 50 states, AdaptHealth (NASDAQ:AHCO) provides home medical equipment, supplies, and related services to patients with chronic conditions like sleep apnea, diabetes, and respiratory disorders. Why Are We Hesitant About AHCO? Sales trends were unexciting over the last two years as its 4.8% annual growth was below the typical healthcare company ROIC of 2.4% reflects management's challenges in identifying attractive investment opportunities, and its shrinking returns suggest its past profit sources are losing steam Diminishing returns on capital from an already low starting point show that neither management's prior nor current bets are going as planned AdaptHealth's stock price of $8.47 implies a valuation ratio of 8.2x forward price-to-earnings. Check out our free in-depth research report to learn more about why AHCO doesn't pass our bar. Market Cap: $18.31 billion Revolutionizing diabetes care with its tubeless "Pod" technology, Insulet (NASDAQ:PODD) develops and manufactures innovative insulin delivery systems for people with diabetes, primarily through its Omnipod product line. Why Should You Buy PODD? Constant currency growth averaged 25.7% over the past two years, showing it can expand globally regardless of the macroeconomic environment Performance over the past five years shows its incremental sales were extremely profitable, as its annual earnings per share growth of 78% outpaced its revenue gains Free cash flow margin grew by 19.7 percentage points over the last five years, giving the company more chips to play with Insulet is trading at $264 per share, or 66.9x forward price-to-earnings. Is now the time to initiate a position? See for yourself in our comprehensive research report, it's free. The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 175% over the last five years. Stocks that made our list in 2019 include now familiar names such as Nvidia (+2,183% between December 2019 and December 2024) as well as under-the-radar businesses like Sterling Infrastructure (+1,096% five-year return). Find your next big winner with StockStory today for free. Sign in to access your portfolio
Yahoo
25-04-2025
- Business
- Yahoo
3 Reasons to Avoid AHCO and 1 Stock to Buy Instead
Shareholders of AdaptHealth would probably like to forget the past six months even happened. The stock dropped 25.2% and now trades at $7.97. This might have investors contemplating their next move. Is there a buying opportunity in AdaptHealth, or does it present a risk to your portfolio? See what our analysts have to say in our full research report, it's free. Even with the cheaper entry price, we're sitting this one out for now. Here are three reasons why AHCO doesn't excite us and a stock we'd rather own. With a network of approximately 680 locations serving patients across all 50 states, AdaptHealth (NASDAQ:AHCO) provides home medical equipment, supplies, and related services to patients with chronic conditions like sleep apnea, diabetes, and respiratory disorders. We at StockStory place the most emphasis on long-term growth, but within healthcare, a stretched historical view may miss recent innovations or disruptive industry trends. AdaptHealth's recent performance shows its demand has slowed significantly as its annualized revenue growth of 4.8% over the last two years was well below its five-year trend. Growth gives us insight into a company's long-term potential, but how capital-efficient was that growth? Enter ROIC, a metric showing how much operating profit a company generates relative to the money it has raised (debt and equity). AdaptHealth historically did a mediocre job investing in profitable growth initiatives. Its five-year average ROIC was 2.4%, lower than the typical cost of capital (how much it costs to raise money) for healthcare companies. ROIC, or return on invested capital, is a metric showing how much operating profit a company generates relative to the money it has raised (debt and equity). We like to invest in businesses with high returns, but the trend in a company's ROIC is what often surprises the market and moves the stock price. Over the last few years, AdaptHealth's ROIC has unfortunately decreased significantly. Paired with its already low returns, these declines suggest its profitable growth opportunities are few and far between. AdaptHealth isn't a terrible business, but it doesn't pass our quality test. Following the recent decline, the stock trades at 7.8× forward price-to-earnings (or $7.97 per share). While this valuation is optically cheap, the potential downside is big given its shaky fundamentals. We're pretty confident there are more exciting stocks to buy at the moment. We'd recommend looking at one of Charlie Munger's all-time favorite businesses. The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 175% over the last five years. Stocks that made our list in 2019 include now familiar names such as Nvidia (+2,183% between December 2019 and December 2024) as well as under-the-radar businesses like Sterling Infrastructure (+1,096% five-year return). Find your next big winner with StockStory today for free. Sign in to access your portfolio
