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Option Care Health shares jump 3% on Q1 earnings and revenue beat

EditorRachael Rajan
Published 04/23/2024, 07:36 AM
© Reuters.
OPCH
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BANNOCKBURN, Ill. - Option Care Health, Inc. (NASDAQ: NASDAQ:OPCH), the nation's leading independent provider of home and alternate site infusion services, reported a robust first quarter, surpassing analyst expectations for both earnings per share (EPS) and revenue.

Investors reacted positively to the news, with the stock price climbing 3.06% as the market responded to the earnings and revenue beat.

The company announced an EPS of $0.26, beating the consensus estimate of $0.23, and revenue of $1.15 billion, which exceeded the $1.1 billion forecast by analysts.

The company's financial performance reflected a significant improvement from the same period last year, with net revenue increasing by 12.8% from $1,015.8 million in the first quarter of 2023. This growth was accompanied by a 14.2% rise in net income to $44.8 million, up from $39.2 million in the prior year. Despite a challenging environment marked by the Change Healthcare (NASDAQ:CHNG) cybersecurity incident, Option Care Health demonstrated resilience with a 4.8% increase in adjusted EBITDA to $98.3 million.

CEO John C. Rademacher attributed the strong results to the company's commitment to providing exceptional patient care and the team's ability to navigate a disruptive environment.

Looking ahead, Option Care Health provided full-year 2024 guidance, forecasting net revenue between $4.65 billion and $4.8 billion, which brackets the analyst consensus of $4.707 billion. The midpoint of the guidance range suggests a slight edge over consensus. The company also anticipates adjusted EBITDA to range from $430 million to $450 million and maintains its previous guidance for cash flow from operations of at least $300 million, an effective tax rate of 26% - 28%, and net interest expense of approximately $55 million to $60 million.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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