Healthcare services provider BrightSpring Health Services (NASDAQ: BTSG) will be announcing earnings results tomorrow before market open. Here’s what to expect.
BrightSpring Health Services beat analysts’ revenue expectations by 6.8% last quarter, reporting revenues of $2.91 billion, up 28.8% year on year. It was a strong quarter for the company, with full-year revenue guidance exceeding analysts’ expectations.
Is BrightSpring Health Services a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting BrightSpring Health Services’s revenue to grow 27.2% year on year to $3.02 billion, improving from the 20.5% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.21 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. BrightSpring Health Services has a history of exceeding Wall Street’s expectations, beating revenue estimates every single time since going public by 5.7% on average.
Looking at BrightSpring Health Services’s peers in the senior health, home health & hospice segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Option Care Health delivered year-on-year revenue growth of 19.7%, beating analysts’ expectations by 4.9%, and Addus HomeCare reported revenues up 7.5%, topping estimates by 2.7%. Option Care Health traded up 1.7% following the results while Addus HomeCare was down 10.4%.
Read our full analysis of Option Care Health’s results here and Addus HomeCare’s results here.
Valuation multiples for many growth stocks have not yet reverted to their early 2021 highs, but the market has been optimistic as of late due to a soft landing. This is an economic situation where rate hikes successfully quelled inflation but did not send the economy into a recession. Furthermore, recent rate cuts and Donald Trump's triumph in the 2024 Presidential election have been tailwinds for the market, and while some of the senior health, home health & hospice stocks have shown solid performance, the group has generally underperformed, with share prices down 7.3% on average over the last month. BrightSpring Health Services is down 20.7% during the same time and is heading into earnings with an average analyst price target of $24.68 (compared to the current share price of $18.63).
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