Earnings results often indicate what direction a company will take in the months ahead. With Q4 behind us, let’s have a look at BrightSpring Health Services (NASDAQ:BTSG) 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 Q4. As a group, revenues beat analysts’ consensus estimates by 2%.
Thankfully, share prices of the companies have been resilient as they are up 6.4% on average since the latest earnings results.
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 $3.05 billion, up 28.6% year on year. This print exceeded analysts’ expectations by 1.1%. Despite the top-line beat, it was still a mixed quarter for the company with a decent beat of analysts’ EPS estimates but full-year EBITDA guidance missing analysts’ expectations.
“In 2024, BrightSpring’s focus on quality and third-party satisfaction scores, growth in customers and patients served, and efficiency and best practices across the organization resulted in another excellent year of both operational and financial performance,” said Jon Rousseau, Chairman, President and Chief Executive Officer of the Company.
The market was likely pricing in the results, and the stock is flat since reporting. It currently trades at $18.52.
Read our full report on BrightSpring Health Services here, it’s free.
Best Q4: Option Care Health (NASDAQ:OPCH)
With a nationwide network of 177 locations serving 43 states and a team of over 4,500 clinicians, Option Care Health (NASDAQ:OPCH) is the largest independent provider of home and alternate site infusion services, delivering medications and clinical support to patients across the United States.
Option Care Health reported revenues of $1.35 billion, up 19.7% year on year, outperforming analysts’ expectations by 4.9%. The business had an exceptional quarter with an impressive beat of analysts’ full-year EPS guidance estimates.
Option Care Health delivered the biggest analyst estimates beat and highest full-year guidance raise among its peers. The market seems happy with the results as the stock is up 6.9% since reporting. It currently trades at $34.91.
Is now the time to buy Option Care Health? Access our full analysis of the earnings results here, it’s free.
Slowest Q4: Brookdale (NYSE:BKD)
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 $780.9 million, up 3.5% year on year, in line with analysts’ expectations. It was a slower quarter as it posted a significant miss of analysts’ EPS estimates.
Brookdale delivered the weakest performance against analyst estimates in the group. Interestingly, the stock is up 11.5% since the results and currently trades at $5.92.
Read our full analysis of Brookdale’s results here.
Addus HomeCare (NASDAQ:ADUS)
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 $297.1 million, up 7.5% year on year. This number topped analysts’ expectations by 2.7%. It was a very strong quarter as it also logged an impressive beat of analysts’ sales volume estimates and a decent beat of analysts’ EPS estimates.
The stock is down 9.9% since reporting and currently trades at $98.
Read our full, actionable report on Addus HomeCare here, it’s free.
AdaptHealth (NASDAQ:AHCO)
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 $856.6 million, flat year on year. This result beat analysts’ expectations by 3.3%. Overall, it was a strong quarter as it also produced a solid beat of analysts’ EPS estimates and full-year EBITDA guidance slightly topping analysts’ expectations.
AdaptHealth had the slowest revenue growth and weakest full-year guidance update among its peers. The stock is up 24.7% since reporting and currently trades at $10.66.
Read our full, actionable report on AdaptHealth here, it’s free.
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