Latest news with #OPCH
Yahoo
13-05-2025
- Business
- Yahoo
OPCH Q1 Earnings Call: Revenue Growth Surpasses Expectations as Acute and Chronic Therapies Expand
Alternate site health provider Option Care Health (NASDAQ:OPCH) reported Q1 CY2025 results exceeding the market's revenue expectations , with sales up 16.3% year on year to $1.33 billion. The company's full-year revenue guidance of $5.5 billion at the midpoint came in 1.3% above analysts' estimates. Its non-GAAP profit of $0.40 per share was 20% above analysts' consensus estimates. Is now the time to buy OPCH? Find out in our full research report (it's free). Revenue: $1.33 billion vs analyst estimates of $1.26 billion (16.3% year-on-year growth, 6.1% beat) Adjusted EPS: $0.40 vs analyst estimates of $0.34 (20% beat) Adjusted EBITDA: $111.8 million vs analyst estimates of $102.8 million (8.4% margin, 8.8% beat) The company lifted its revenue guidance for the full year to $5.5 billion at the midpoint from $5.4 billion, a 1.9% increase Management slightly raised its full-year Adjusted EPS guidance to $1.66 at the midpoint EBITDA guidance for the full year is $462.5 million at the midpoint, in line with analyst expectations Operating Margin: 5.9%, in line with the same quarter last year Free Cash Flow was -$16.59 million compared to -$74.6 million in the same quarter last year Market Capitalization: $5.22 billion Option Care Health's first quarter results reflected broad-based growth across both acute and chronic therapy lines, with management citing improved IV bag supply, expanded infusion clinic capacity, and deeper payer partnerships as key drivers. CEO John Rademacher emphasized the company's ability to support complex patient needs through investments in technology, a national compounding pharmacy network, and the addition of dedicated care transition staff. He also noted that revenue growth was balanced, with acute therapies growing in the mid-teens and chronic therapies in the high teens year over year. Looking ahead, management's full-year outlook is shaped by ongoing investment in technology, further expansion of infusion clinic and nursing capabilities, and proactive risk management in response to potential policy changes such as new tariffs. CFO Mike Shapiro highlighted that guidance does not yet reflect any material impact from tariffs or policy shifts, citing current uncertainty. However, Rademacher noted that a cross-functional team is actively monitoring potential supply chain disruptions and cost increases, aiming for an agile response if needed. Option Care Health's management attributed first quarter outperformance to operational execution in both acute and chronic care segments, expanded clinical capacity, and efficiency gains from technology investments. The ability to serve a diverse patient portfolio and deepen relationships with payers underpinned the company's positive momentum. Acute therapy growth: Management reported mid-teens growth in acute therapies, driven by improved IV bag supply and investments in dedicated care transition specialists. This allowed the company to respond rapidly to patient discharges and win new referrals from hospitals. Chronic therapy momentum: High-teens growth in chronic therapies was supported by strong performance in rare, orphan, and limited distribution drugs. Management cited effective revenue cycle management and sustained patient census despite reimbursement changes as contributors. Clinic and chair expansion: The opening of new infusion clinics and additional compounding pharmacy facilities increased the company's capacity to meet patient demand. Over one-third of nursing visits now occur in company-operated centers, highlighting a shift toward alternate-site care. Technology-enabled efficiency: Investments in robotic process automation and AI, particularly in patient registration and revenue cycle processes, led to measurable improvements in cash collection velocity and operational productivity. The partnership with Palantir was highlighted as enabling faster patient onboarding. Payer partnership deepening: Management described more collaborative relationships with health plans, as payers seek to manage medical loss ratios and total cost of care. Option Care Health's national scale and local responsiveness were positioned as differentiators in supporting site-of-care initiatives. Management's outlook for the remainder of the year is centered on maintaining balanced growth across therapy types, increasing operational efficiency, and adapting to potential changes in the regulatory or reimbursement environment. Therapy mix and payer demand: Sustained growth in both acute and chronic therapies is expected, supported by payer-driven site-of-care initiatives and the company's ability to deliver lower-cost, high-quality care in non-hospital settings. Operational leverage and technology adoption: Continued investment in automation and AI is projected to drive further efficiency in revenue cycle management and patient onboarding, supporting margin stability even as volumes grow. Policy and supply chain risks: Management acknowledged that uncertainty around tariffs, reimbursement policy, and possible supply chain disruptions remains a risk. A dedicated team is monitoring developments, with the company prepared to adjust procurement and pricing strategies if needed. Lisa Gill (JPMorgan): Asked whether guidance conservatism reflected fundamental concerns beyond tariff uncertainty. Management said the cautious approach was due to seasonal volatility and the unpredictable impact of potential policy shifts. Pito Chickering (Deutsche Bank): Inquired about tariff pass-through mechanics and reference pricing lags. CFO Mike Shapiro explained that reimbursement typically tracks procurement costs over time, though there could be short-term mismatches. Constantine Davides (Citizens): Queried on evolving payer relationships and network design. CEO John Rademacher said Option Care Health is increasingly integral to payer site-of-care strategies, especially amid competitive retrenchment. Matt Larew (William Blair): Questioned the sustainability of acute therapy growth after recent market share gains. Management noted that while recent growth was elevated, long-term acute growth is expected to normalize as market dynamics stabilize. Joanna Gajuk (Bank of America): Sought clarity on the size and timing of STELARA headwinds and supply costs related to tariffs. Management confirmed the expected annual impact from STELARA and that medical supply costs exposed to tariffs are currently limited and manageable. In future quarters, the StockStory team will closely track (1) the durability of acute therapy growth as competitive dynamics evolve, (2) the impact of ongoing technology investments on revenue cycle and cost efficiency, and (3) the company's ability to mitigate policy and tariff risks as Washington debates new healthcare measures. Progress on integrating recent acquisitions and expanding clinic capacity will also be important markers of execution. Option Care Health currently trades at a forward P/E ratio of 19.3×. In the wake of earnings, is it a buy or sell? The answer lies in our free research report. Market indices reached historic highs following Donald Trump's presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth. While this has caused many investors to adopt a "fearful" wait-and-see approach, we're leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market 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 Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.
Yahoo
30-04-2025
- Business
- Yahoo
Option Care: Q1 Earnings Snapshot
BANNOCKBURN, Ill. (AP) — BANNOCKBURN, Ill. (AP) — Option Care Health, Inc. (OPCH) on Tuesday reported first-quarter earnings of $46.7 million. The Bannockburn, Illinois-based company said it had net income of 28 cents per share. Earnings, adjusted for one-time gains and costs, were 40 cents per share. The results topped Wall Street expectations. The average estimate of six analysts surveyed by Zacks Investment Research was for earnings of 36 cents per share. The infusion and home care services company posted revenue of $1.33 billion in the period, also topping Street forecasts. Five analysts surveyed by Zacks expected $1.26 billion. Option Care expects full-year earnings in the range of $1.61 to $1.70 per share, with revenue in the range of $5.4 billion to $5.6 billion. _____ This story was generated by Automated Insights ( using data from Zacks Investment Research. Access a Zacks stock report on OPCH at Sign in to access your portfolio
Yahoo
30-04-2025
- Business
- Yahoo
Option Care (OPCH) Surpasses Q1 Earnings and Revenue Estimates
Option Care (OPCH) came out with quarterly earnings of $0.40 per share, beating the Zacks Consensus Estimate of $0.36 per share. This compares to earnings of $0.26 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 11.11%. A quarter ago, it was expected that this infusion and home care services company would post earnings of $0.33 per share when it actually produced earnings of $0.35, delivering a surprise of 6.06%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. Option Care , which belongs to the Zacks Medical - Outpatient and Home Healthcare industry, posted revenues of $1.33 billion for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 5.38%. This compares to year-ago revenues of $1.15 billion. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Option Care shares have added about 42.1% since the beginning of the year versus the S&P 500's decline of -6%. While Option Care has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Option Care: mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is $0.42 on $1.34 billion in revenues for the coming quarter and $1.68 on $5.44 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Medical - Outpatient and Home Healthcare is currently in the top 21% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the same industry, Aveanna Healthcare (AVAH), has yet to report results for the quarter ended March 2025. The results are expected to be released on May 8. This home health care services provider is expected to post break-even quarterly earnings per share in its upcoming report, which represents a year-over-year change of +100%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Aveanna Healthcare's revenues are expected to be $512.9 million, up 4.5% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Option Care Health, Inc. (OPCH) : Free Stock Analysis Report Aveanna Healthcare Holdings Inc. (AVAH) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
Yahoo
30-04-2025
- Business
- Yahoo
Why Option Care Health, Inc. (OPCH) Went Down On Tuesday
We recently published a list of . In this article, we are going to take a look at where Option Care Health, Inc. (NASDAQ:OPCH) stands against other companies that were heavily sold down. Wall Street's main indices finished stronger on Tuesday, buoyed by the influx of more corporate earnings results. The Dow Jones grew by 0.75 percent, the S&P 500 rose by 0.58 percent, and the Nasdaq was up by 0.55 percent. Despite the wider market optimism, 10 companies managed to register declines, predominantly due to investors exercising caution coupled with companies' dismal earnings performance during the past quarter. In this article, we have identified Tuesday's 10 worst-performing stocks and detailed the reasons behind their drop. To come up with the list, we considered only the stocks with a $2-billion market capitalization and $5-million trading volume. A home infusion nurse in full PPE gown delivering treatments to a patient in their own home. Option Care Health, Inc. (NASDAQ:OPCH) Option Care Health dropped its share prices by 6.92 percent on Tuesday to finish at $30.69 each, as investors appeared to have shunned the results of its first quarter earnings performance. In its latest earnings release, Option Care Health, Inc. (NASDAQ:OPCH) announced that its net income for the first three months rose by 4.2 percent to $46.7 million from $44.8 million in the same period a year earlier as revenues jumped by 16.3 percent to $1.3 billion from $1.146 billion year-on-year. 'The Option Care Health team's execution in a dynamic environment produced another great quarter of results. Overall, we expect 2025 to be a productive year as we continue to invest in future growth to further expand patient access to quality care,' said Option Care CEO John C. Rademacher. Looking ahead, the company expects net revenues to settle between $5.4 billion and $5.6 billion while adjusted diluted earnings are pegged at a range of $1.61 to $1.7. Overall, OPCH ranks 4th on our list of companies that were heavily sold down. While we acknowledge the potential of OPCH as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than OPCH but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
Yahoo
30-04-2025
- Business
- Yahoo
Is Option Care Health, Inc.'s (NASDAQ:OPCH) Latest Stock Performance Being Led By Its Strong Fundamentals?
Option Care Health's (NASDAQ:OPCH) stock up by 6.7% over the past three months. Given its impressive performance, we decided to study the company's key financial indicators as a company's long-term fundamentals usually dictate market outcomes. Specifically, we decided to study Option Care Health's ROE in this article. ROE or return on equity is a useful tool to assess how effectively a company can generate returns on the investment it received from its shareholders. In short, ROE shows the profit each dollar generates with respect to its shareholder investments. Our free stock report includes 3 warning signs investors should be aware of before investing in Option Care Health. Read for free now. The formula for return on equity is: Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity So, based on the above formula, the ROE for Option Care Health is: 15% = US$212m ÷ US$1.4b (Based on the trailing twelve months to December 2024). The 'return' refers to a company's earnings over the last year. That means that for every $1 worth of shareholders' equity, the company generated $0.15 in profit. Check out our latest analysis for Option Care Health Thus far, we have learned that ROE measures how efficiently a company is generating its profits. Based on how much of its profits the company chooses to reinvest or "retain", we are then able to evaluate a company's future ability to generate profits. Assuming all else is equal, companies that have both a higher return on equity and higher profit retention are usually the ones that have a higher growth rate when compared to companies that don't have the same features. To start with, Option Care Health's ROE looks acceptable. Further, the company's ROE compares quite favorably to the industry average of 10%. This probably laid the ground for Option Care Health's significant 50% net income growth seen over the past five years. We believe that there might also be other aspects that are positively influencing the company's earnings growth. For example, it is possible that the company's management has made some good strategic decisions, or that the company has a low payout ratio. Next, on comparing with the industry net income growth, we found that Option Care Health's growth is quite high when compared to the industry average growth of 1.9% in the same period, which is great to see. The basis for attaching value to a company is, to a great extent, tied to its earnings growth. The investor should try to establish if the expected growth or decline in earnings, whichever the case may be, is priced in. Doing so will help them establish if the stock's future looks promising or ominous. Has the market priced in the future outlook for OPCH? You can find out in our latest intrinsic value infographic research report. Option Care Health doesn't pay any regular dividends to its shareholders, meaning that the company has been reinvesting all of its profits into the business. This is likely what's driving the high earnings growth number discussed above. Overall, we are quite pleased with Option Care Health's performance. Specifically, we like that the company is reinvesting a huge chunk of its profits at a high rate of return. This of course has caused the company to see substantial growth in its earnings. With that said, the latest industry analyst forecasts reveal that the company's earnings growth is expected to slow down. Are these analysts expectations based on the broad expectations for the industry, or on the company's fundamentals? Click here to be taken to our analyst's forecasts page for the company. 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. Sign in to access your portfolio
