Latest news with #AstranaHealth
Yahoo
2 days ago
- Business
- Yahoo
5 Must-Read Analyst Questions From Astrana Health's Q1 Earnings Call
Astrana Health's first quarter results for 2025 were met with a negative market reaction, with revenue growth driven by its Care Partners segment and progress in full-risk contracts. However, management acknowledged that the quarter's performance was tempered by lower-than-expected revenue and compressed operating margins. CEO Brandon Sim pointed to the flu season and higher emergency room and lab utilization in Medicaid as factors impacting costs, while also highlighting ongoing investments in technology and integration. Sim stated, 'Margins were moderated by planned ongoing investments in growth integration technology, as well as by revenue growth in areas with lower near-term margin profiles.' Is now the time to buy ASTH? Find out in our full research report (it's free). Revenue: $620.4 million vs analyst estimates of $636.2 million (53.4% year-on-year growth, 2.5% miss) Adjusted EPS: $0.34 vs analyst estimates of $0.33 (in line) Adjusted EBITDA: $36.39 million vs analyst estimates of $35.7 million (5.9% margin, 1.9% beat) The company reconfirmed its revenue guidance for the full year of $2.6 billion at the midpoint EBITDA guidance for the full year is $180 million at the midpoint, below analyst estimates of $181.2 million Operating Margin: 3.3%, down from 7.5% in the same quarter last year Market Capitalization: $1.23 billion While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Ryan Daniels (William Blair) asked about remaining milestones for CHS integration. CEO Brandon Sim explained integration is complete, but further implementation of the care model should drive margin improvements over time. Michael Ha (Baird) pressed on the seasonality and drivers behind the lighter revenue outlook for next quarter. Sim attributed this to Medicaid volatility and full-risk conversions being weighted toward the second half of the year. Jack Slevin (Jefferies) questioned Astrana's confidence in leveraging favorable Medicare Advantage rates. Sim responded that while the rate update was anticipated, its exact financial impact will become clearer as more details emerge. Jailendra Singh (Truist Securities) asked about profitability in the ACO REACH program and the impact of recent risk adjustment changes. Sim shared that the company absorbed a modest drag from retroactive adjustments, offset by other risk-management strategies. Brooks O'Neil (Lake Street Capital Markets) probed on organizational stress from rapid growth and integration. Sim acknowledged the challenges of scaling rapidly, emphasizing ongoing focus on integration and cultural cohesion. In the upcoming quarters, the StockStory team will be monitoring (1) the pace and effectiveness of integrating Prospect Health and realizing promised synergies, (2) the continued conversion of members to full-risk contracts and resulting margin trends, and (3) the outcome of Medicaid contract renewals and regulatory developments in key states. Progress in leadership-driven data and technology initiatives will also be a key signpost for sustainable growth. Astrana Health currently trades at $24.73, down from $33.40 just before the earnings. At this price, is it a buy or sell? Find out in our full 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 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today.
Yahoo
09-06-2025
- Business
- Yahoo
Healthcare Technology for Providers Stocks Q1 Teardown: Astrana Health (NASDAQ:ASTH) Vs The Rest
Looking back on healthcare technology for providers stocks' Q1 earnings, we examine this quarter's best and worst performers, including Astrana Health (NASDAQ:ASTH) and its peers. The healthcare technology industry focuses on delivering software, data analytics, and workflow solutions to hospitals, clinics, and other care facilities. These companies enable providers to streamline operations, optimize patient outcomes, and transition to value-based care models. They boast subscription-based revenues or long-term contracts, providing financial stability and growth potential. However, they face challenges such as lengthy sales cycles, significant upfront investment in technology development, and reliance on providers' adoption of new tools, which can be hindered by budget constraints or resistance to change. Over the next few years, the sector is poised for growth as providers increasingly prioritize digital transformation and efficiency in response to rising healthcare costs and patient demand for seamless care. Tailwinds include the growing adoption of AI-driven tools for patient engagement and operational improvements, government incentives for digitization, and the expansion of telehealth and remote patient monitoring. However, headwinds such as tightening hospital budgets, cybersecurity threats, and the fragmented nature of healthcare systems could slow adoption. The 6 healthcare technology for providers stocks we track reported a mixed Q1. As a group, revenues beat analysts' consensus estimates by 3.4% while next quarter's revenue guidance was 0.7% below. While some healthcare technology for providers stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 4.4% since the latest earnings results. Formerly known as Apollo Medical Holdings until early 2024, Astrana Health (NASDAQ:ASTH) operates a technology-powered healthcare platform that enables physicians to deliver coordinated care while successfully participating in value-based payment models. Astrana Health reported revenues of $620.4 million, up 53.4% year on year. This print fell short of analysts' expectations by 2.5%. Overall, it was a slower quarter with full-year EBITDA guidance slightly missing analysts' expectations. "Astrana's strong start to the year reflects the continued momentum behind our mission to build the nation's leading patient-centered healthcare platform. Our differentiated clinical capabilities and technology-enabled delegated model continue to drive strong, profitable growth while delivering better outcomes for both patients and providers. Even in a complex regulatory and economic environment, we continue to prove that value-based care can deliver meaningful impact at scale with long-term sustainability," said Brandon Sim, President and CEO of Astrana Health. Astrana Health achieved the fastest revenue growth but had the weakest performance against analyst estimates and weakest performance against analyst estimates of the whole group. Still, the market seems discontent with the results. The stock is down 11.7% since reporting and currently trades at $25.20. Is now the time to buy Astrana Health? Access our full analysis of the earnings results here, it's free. Operating one of the largest healthcare group purchasing organizations in the United States with over 4,350 hospital members, Premier (NASDAQ:PINC) is a technology-driven healthcare improvement company that helps hospitals, health systems, and other providers reduce costs and improve clinical outcomes. Premier reported revenues of $261.4 million, down 8.9% year on year, outperforming analysts' expectations by 7.4%. The business had a very strong quarter with an impressive beat of analysts' EPS estimates and a solid beat of analysts' full-year EPS guidance estimates. Premier delivered the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 11.7% since reporting. It currently trades at $22.94. Is now the time to buy Premier? Access our full analysis of the earnings results here, it's free. Driven by the vision of an "Autonomous Pharmacy" with zero medication errors, Omnicell (NASDAQ:OMCL) provides medication management automation and adherence tools that help healthcare systems and pharmacies reduce errors and improve efficiency. Omnicell reported revenues of $269.7 million, up 9.6% year on year, exceeding analysts' expectations by 3.7%. Still, it was a slower quarter as it posted full-year EBITDA guidance missing analysts' expectations. Interestingly, the stock is up 2.6% since the results and currently trades at $31.29. Read our full analysis of Omnicell's results here. Founded in 2011 to transform how healthcare is delivered to patients with complex needs, Evolent Health (NYSE:EVH) provides specialty care management services and technology solutions that help health plans and providers deliver better care for patients with complex conditions. Evolent Health reported revenues of $483.6 million, down 24.4% year on year. This number surpassed analysts' expectations by 4.9%. Zooming out, it was a mixed quarter as it also produced full-year revenue guidance slightly topping analysts' expectations but a significant miss of analysts' EPS estimates. Evolent Health pulled off the highest full-year guidance raise but had the slowest revenue growth among its peers. The stock is down 22.7% since reporting and currently trades at $8.33. Read our full, actionable report on Evolent Health here, it's free. Operating in 13 states and the District of Columbia with over 4,300 providers serving more than 4.8 million patients, Privia Health (NASDAQ:PRVA) is a technology-driven company that helps physicians optimize their practices, improve patient experiences, and transition to value-based care models. Privia Health reported revenues of $480.1 million, up 15.6% year on year. This result beat analysts' expectations by 6.5%. It was a strong quarter as it also produced an impressive beat of analysts' EPS estimates and sales volume in line with analysts' estimates. The stock is flat since reporting and currently trades at $23.19. Read our full, actionable report on Privia Health here, it's free. Thanks to the Fed's rate hikes in 2022 and 2023, inflation has been on a steady path downward, easing back toward that 2% sweet spot. Fortunately (miraculously to some), all this tightening didn't send the economy tumbling into a recession, so here we are, cautiously celebrating a soft landing. The cherry on top? Recent rate cuts (half a point in September 2024, a quarter in November) have propped up markets, especially after Trump's November win lit a fire under major indices and sent them to all-time highs. However, there's still plenty to ponder — tariffs, corporate tax cuts, and what 2025 might hold for the economy. Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Quality Compounder Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
22-05-2025
- Business
- Yahoo
Astrana Health (ASTH): Buy, Sell, or Hold Post Q1 Earnings?
Astrana Health has gotten torched over the last six months - since November 2024, its stock price has dropped 39.1% to $25.63 per share. This was partly driven by its softer quarterly results and might have investors contemplating their next move. Following the drawdown, is this a buying opportunity for ASTH? Find out in our full research report, it's free. Formerly known as Apollo Medical Holdings until early 2024, Astrana Health (NASDAQ:ASTH) operates a technology-powered healthcare platform that enables physicians to deliver coordinated care while successfully participating in value-based payment models. A company's long-term performance is an indicator of its overall quality. Any business can have short-term success, but a top-tier one grows for years. Over the last five years, Astrana Health grew its sales at an exceptional 29% compounded annual growth rate. Its growth surpassed the average healthcare company and shows its offerings resonate with customers. Analyzing the long-term change in earnings per share (EPS) shows whether a company's incremental sales were profitable – for example, revenue could be inflated through excessive spending on advertising and promotions. Astrana Health's EPS grew at an astounding 25% compounded annual growth rate over the last five years. This performance was better than most healthcare businesses. A company's ROIC, or return on invested capital, shows how much operating profit it makes compared 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. Unfortunately, Astrana Health's ROIC has decreased significantly over the last few years. Only time will tell if its new bets can bear fruit and potentially reverse the trend. Astrana Health's merits more than compensate for its flaws. With the recent decline, the stock trades at 6.2× forward EV-to-EBITDA (or $25.63 per share). Is now the right time to buy? See for yourself in our in-depth 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 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 176% over the last five years. Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today. Sign in to access your portfolio
Yahoo
08-05-2025
- Business
- Yahoo
Astrana Health (NASDAQ:ASTH) Misses Q1 Revenue Estimates
Healthcare services company Astrana Health missed Wall Street's revenue expectations in Q1 CY2025, but sales rose 53.4% year on year to $620.4 million. Next quarter's revenue guidance of $635 million underwhelmed, coming in 2.7% below analysts' estimates. Its GAAP profit of $0.14 per share was 33.1% below analysts' consensus estimates. Is now the time to buy Astrana Health? Find out in our full research report. Revenue: $620.4 million vs analyst estimates of $636.2 million (53.4% year-on-year growth, 2.5% miss) EPS (GAAP): $0.14 vs analyst expectations of $0.21 (33.1% miss) Adjusted EBITDA: $36.39 million vs analyst estimates of $35.7 million (5.9% margin, 1.9% beat) The company reconfirmed its revenue guidance for the full year of $2.6 billion at the midpoint EBITDA guidance for the full year is $180 million at the midpoint, below analyst estimates of $181.2 million Operating Margin: 3.3%, down from 7.5% in the same quarter last year Free Cash Flow Margin: 2.2%, similar to the same quarter last year Market Capitalization: $1.67 billion "Astrana's strong start to the year reflects the continued momentum behind our mission to build the nation's leading patient-centered healthcare platform. Our differentiated clinical capabilities and technology-enabled delegated model continue to drive strong, profitable growth while delivering better outcomes for both patients and providers. Even in a complex regulatory and economic environment, we continue to prove that value-based care can deliver meaningful impact at scale with long-term sustainability," said Brandon Sim, President and CEO of Astrana Health. Formerly known as Apollo Medical Holdings until early 2024, Astrana Health (NASDAQ:ASTH) operates a technology-powered healthcare platform that enables physicians to deliver coordinated care while successfully participating in value-based payment models. A company's long-term sales performance can indicate its overall quality. Any business can experience short-term success, but top-performing ones enjoy sustained growth for years. Thankfully, Astrana Health's 29% annualized revenue growth over the last five years was exceptional. Its growth beat the average healthcare company and shows its offerings resonate with customers, a helpful starting point for our analysis. Long-term growth is the most important, but within healthcare, a half-decade historical view may miss new innovations or demand cycles. Astrana Health's annualized revenue growth of 35.9% over the last two years is above its five-year trend, suggesting its demand was strong and recently accelerated. We can better understand the company's revenue dynamics by analyzing its most important segment, . Over the last two years, Astrana Health's revenue averaged 39.5% year-on-year growth. This quarter, Astrana Health achieved a magnificent 53.4% year-on-year revenue growth rate, but its $620.4 million of revenue fell short of Wall Street's lofty estimates. Company management is currently guiding for a 30.6% year-on-year increase in sales next quarter. Looking further ahead, sell-side analysts expect revenue to grow 26.1% over the next 12 months, a deceleration versus the last two years. Despite the slowdown, this projection is commendable and indicates the market sees success for its products and services. Today's young investors likely haven't read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next. Astrana Health was profitable over the last five years but held back by its large cost base. Its average operating margin of 7.6% was weak for a healthcare business. Looking at the trend in its profitability, Astrana Health's operating margin decreased by 13.1 percentage points over the last five years. The company's two-year trajectory also shows it failed to get its profitability back to the peak as its margin fell by 4.7 percentage points. This performance was poor no matter how you look at it - it shows its expenses were rising and it couldn't pass those costs onto its customers. In Q1, Astrana Health generated an operating profit margin of 3.3%, down 4.1 percentage points year on year. This contraction shows it was less efficient because its expenses grew faster than its revenue. We track the long-term change in earnings per share (EPS) for the same reason as long-term revenue growth. Compared to revenue, however, EPS highlights whether a company's growth is profitable. Astrana Health's EPS grew at a solid 8.3% compounded annual growth rate over the last five years. However, this performance was lower than its 29% annualized revenue growth, telling us the company became less profitable on a per-share basis as it expanded. Diving into the nuances of Astrana Health's earnings can give us a better understanding of its performance. As we mentioned earlier, Astrana Health's operating margin declined by 13.1 percentage points over the last five years. Its share count also grew by 18.7%, meaning the company not only became less efficient with its operating expenses but also diluted its shareholders. In Q1, Astrana Health reported EPS at $0.14, down from $0.31 in the same quarter last year. This print missed analysts' estimates, but we care more about long-term EPS growth than short-term movements. Over the next 12 months, Wall Street expects Astrana Health's full-year EPS of $0.72 to grow 92.3%. It was good to see Astrana Health provide EBITDA guidance for next quarter that slightly beat analysts' expectations. On the other hand, its revenue guidance for next quarter missed significantly and its revenue and EPS fell short of Wall Street's estimates. Overall, this quarter could have been better. The stock traded down 3.9% to $32.11 immediately following the results. Astrana Health may have had a tough quarter, but does that actually create an opportunity to invest right now? The latest quarter does matter, but not nearly as much as longer-term fundamentals and valuation, when deciding if the stock is a buy. We cover that in our actionable full research report which you can read here, it's free.
Yahoo
16-04-2025
- Business
- Yahoo
Q4 Rundown: Astrana Health (NASDAQ:ASTH) Vs Other Healthcare Technology for Providers Stocks
Wrapping up Q4 earnings, we look at the numbers and key takeaways for the healthcare technology for providers stocks, including Astrana Health (NASDAQ:ASTH) and its peers. The healthcare technology industry focuses on delivering software, data analytics, and workflow solutions to hospitals, clinics, and other care facilities. These companies enable providers to streamline operations, optimize patient outcomes, and transition to value-based care models. They boast subscription-based revenues or long-term contracts, providing financial stability and growth potential. However, they face challenges such as lengthy sales cycles, significant upfront investment in technology development, and reliance on providers' adoption of new tools, which can be hindered by budget constraints or resistance to change. Over the next few years, the sector is poised for growth as providers increasingly prioritize digital transformation and efficiency in response to rising healthcare costs and patient demand for seamless care. Tailwinds include the growing adoption of AI-driven tools for patient engagement and operational improvements, government incentives for digitization, and the expansion of telehealth and remote patient monitoring. However, headwinds such as tightening hospital budgets, cybersecurity threats, and the fragmented nature of healthcare systems could slow adoption. The 6 healthcare technology for providers stocks we track reported a slower Q4. As a group, revenues beat analysts' consensus estimates by 3.1% while next quarter's revenue guidance was 0.6% below. Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 11.1% since the latest earnings results. Formerly known as Apollo Medical Holdings until early 2024, Astrana Health (NASDAQ:ASTH) operates a technology-powered healthcare platform that enables physicians to deliver coordinated care while successfully participating in value-based payment models. Astrana Health reported revenues of $665.2 million, up 88.4% year on year. This print exceeded analysts' expectations by 6.9%. Despite the top-line beat, it was still a mixed quarter for the company with full-year revenue guidance beating analysts' expectations. Astrana Health pulled off the fastest revenue growth and highest full-year guidance raise of the whole group. Still, the market seems discontent with the results. The stock is down 0.9% since reporting and currently trades at $34.17. Is now the time to buy Astrana Health? Access our full analysis of the earnings results here, it's free. Founded in 2005 to streamline the traditionally paper-heavy patient check-in process, Phreesia (NYSE:PHR) provides software solutions that automate patient intake, registration, and payment processes for healthcare organizations while improving patient engagement in their care. Phreesia reported revenues of $109.7 million, up 15.4% year on year, outperforming analysts' expectations by 0.7%. The business had a strong quarter with a solid beat of analysts' EPS estimates and full-year EBITDA guidance topping analysts' expectations. However, the results were likely priced into the stock as it's traded sideways since reporting. Shares currently sit at $23.67. Is now the time to buy Phreesia? Access our full analysis of the earnings results here, it's free. Founded in 2011 to transform how healthcare is delivered to patients with complex needs, Evolent Health (NYSE:EVH) provides specialty care management services and technology solutions that help health plans and providers deliver better care for patients with complex conditions. Evolent Health reported revenues of $646.5 million, up 16.3% year on year, falling short of analysts' expectations by 0.7%. It was a softer quarter as it posted a significant miss of analysts' EPS estimates and EBITDA guidance for next quarter missing analysts' expectations significantly. Evolent Health delivered the weakest performance against analyst estimates and weakest full-year guidance update in the group. As expected, the stock is down 15.9% since the results and currently trades at $9.02. Read our full analysis of Evolent Health's results here. Operating in 13 states and the District of Columbia with over 4,300 providers serving more than 4.8 million patients, Privia Health (NASDAQ:PRVA) is a technology-driven company that helps physicians optimize their practices, improve patient experiences, and transition to value-based care models. Privia Health reported revenues of $460.9 million, up 4.6% year on year. This result surpassed analysts' expectations by 9.4%. More broadly, it was a satisfactory quarter as it also produced a solid beat of analysts' sales volume estimates but full-year revenue guidance missing analysts' expectations. Privia Health delivered the biggest analyst estimates beat among its peers. The stock is down 1.2% since reporting and currently trades at $23.76. Read our full, actionable report on Privia Health here, it's free. Operating one of the largest healthcare group purchasing organizations in the United States with over 4,350 hospital members, Premier (NASDAQ:PINC) is a technology-driven healthcare improvement company that helps hospitals, health systems, and other providers reduce costs and improve clinical outcomes. Premier reported revenues of $240.3 million, down 14.2% year on year. This number met analysts' expectations. Aside from that, it was a slower quarter as it logged a significant miss of analysts' EPS estimates and full-year revenue guidance missing analysts' expectations. Premier had the slowest revenue growth among its peers. The stock is down 15.2% since reporting and currently trades at $19.01. Read our full, actionable report on Premier here, it's free. The Fed's interest rate hikes throughout 2022 and 2023 have successfully cooled post-pandemic inflation, bringing it closer to the 2% target. Inflationary pressures have eased without tipping the economy into a recession, suggesting a soft landing. This stability, paired with recent rate cuts (0.5% in September 2024 and 0.25% in November 2024), fueled a strong year for the stock market in 2024. The markets surged further after Donald Trump's presidential victory in November, with major indices reaching record highs in the days following the election. Still, questions remain about the direction of economic policy, as potential tariffs and corporate tax changes add uncertainty for 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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