Astrana Health (ASTH), a healthcare services company, is set to release its Q4 earnings tomorrow afternoon. This report provides a preview of what investors can expect, based on analyst estimates and recent industry performance.
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Last quarter, Astrana Health exceeded revenue expectations by 2.2%, reporting $478.7 million, a 37.5% year-over-year increase. Despite exceeding full-year revenue guidance, the company fell short of analysts’ EPS estimates. This quarter, analysts predict significant revenue growth for Astrana Health.
Q4 Earnings Estimates and Analyst Sentiment
Analysts project a substantial 76.2% year-over-year revenue growth for Astrana Health in Q4, reaching $622.1 million. This marks a significant acceleration from the 20% growth observed in the same quarter last year. Adjusted earnings per share are estimated at $0.24.
Over the past month, analysts have generally maintained their estimates, indicating confidence in Astrana Health’s performance leading up to the earnings announcement. However, it’s important to note that the company has missed revenue estimates in the past two quarters.
Peer Performance in Healthcare Technology
Examining Astrana Health’s competitors in the healthcare technology sector provides further context. Premier, Inc. (PINC) reported a 14.2% year-over-year revenue decline in Q4, meeting expectations. Omnicell, Inc. (OMCL) exceeded expectations with an 18.6% revenue increase. Despite meeting or exceeding expectations, both Premier and Omnicell experienced negative stock price movement following their earnings announcements, declining 14.3% and 9.5%, respectively.
For further analysis on Premier and Omnicell’s performance, consider reviewing their respective earnings reports.
Market Context and ASTH Stock Performance
The stock market, particularly growth stocks, has performed well in 2024, influenced by factors like a soft economic landing and the Federal Reserve’s rate cuts. While some healthcare technology stocks have shown strong results, the sector as a whole has underperformed, with an average share price decline of 4.4% over the last month. Astrana Health’s stock has mirrored this trend, falling 3.8% during the same period. The current average analyst price target for ASTH is $60.70, significantly higher than its current share price of $36.50.
Conclusion: What to Watch for in ASTH Earnings
Astrana Health’s Q4 earnings announcement will be closely watched for insights into its revenue growth and profitability. Key factors to consider include:
- Actual revenue versus analyst estimates: Can Astrana Health meet or exceed the projected 76.2% revenue growth?
- Earnings per share performance: Will adjusted EPS align with the anticipated $0.24?
- Forward guidance: What outlook will management provide for the upcoming year?
Given the recent market volatility and mixed performance within the healthcare technology sector, Astrana Health’s earnings report will be crucial in determining its future trajectory. Investors should pay close attention to the company’s performance relative to expectations and its outlook for the remainder of the year.
