Let’s dig into the relative performance of agilon health (NYSE: AGL) and its peers as we unravel the now-completed Q4 outpatient & specialty care earnings season.

The outpatient and specialty care industry delivers targeted medical services in non-hospital settings that are often cost-effective compared to inpatient alternatives. This means that they are more desired as rising healthcare costs and ways to combat them become more and more top-of-mind. Outpatient and specialty care providers boast revenue streams that are stable due to the recurring nature of treatment for chronic conditions and long-term patient relationships. However, their reliance on government reimbursement programs like Medicare means stroke-of-the-pen risk. Additionally, scaling a network of facilities can be capital-intensive with uneven return profiles amid competition from integrated healthcare systems. Looking ahead, the industry is positioned to grow as demand for outpatient services expands, driven by aging populations, a rising prevalence of chronic diseases, and a shift toward value-based care models. Tailwinds include advancements in medical technology that support more complex procedures in outpatient settings and the increasing focus on preventive care, which can be aided by data and AI. However, headwinds such as reimbursement rate cuts, labor shortages, and the financial strain of digitization may temper growth.

The 7 outpatient & specialty care stocks we track reported a mixed Q4. As a group, revenues beat analysts’ consensus estimates by 0.6% while next quarter’s revenue guidance was 0.7% below.

Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 6.1% since the latest earnings results.

Weakest Q4: agilon health (NYSE: AGL)

Transforming how doctors care for seniors by shifting financial incentives from volume to outcomes, agilon health (NYSE: AGL) provides a platform that helps primary care physicians transition to value-based care models for Medicare patients through long-term partnerships and global capitation arrangements.

agilon health reported revenues of $1.52 billion, up 44.2% year on year. This print was in line with analysts’ expectations, but overall, it was a softer quarter for the company with full-year EBITDA guidance missing analysts’ expectations.

“While the underlying strength of our model continues to deliver significant value to patients, payors, and our PCP partners, we are still managing through a challenging Medicare Advantage environment.” said Steve Sell, CEO.

agilon health achieved the fastest revenue growth but had the weakest full-year guidance update of the whole group. The company added 2,000 customers to reach a total of 527,000. Unsurprisingly, the stock is up 12.7% since reporting and currently trades at $4.08.

Is now the time to buy agilon health? Access our full analysis of the earnings results here, it’s free.

Best Q4: LifeStance Health Group (NASDAQ: LFST)

With over 6,600 licensed mental health professionals treating more than 880,000 patients annually, LifeStance Health (NASDAQ: LFST) provides outpatient mental health services through a network of clinicians offering psychiatric evaluations, psychological testing, and therapy across 33 states.

LifeStance Health Group reported revenues of $325.5 million, up 16% year on year, outperforming analysts’ expectations by 3.6%. The business had an exceptional quarter with EBITDA guidance for next quarter exceeding analysts’ expectations and a solid beat of analysts’ EPS estimates.

LifeStance Health Group achieved the highest full-year guidance raise among its peers. Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 11.6% since reporting. It currently trades at $6.63.

Is now the time to buy LifeStance Health Group? Access our full analysis of the earnings results here, it’s free.

Select Medical (NYSE: SEM)

With a nationwide network spanning 46 states and over 2,700 healthcare facilities, Select Medical (NYSE: SEM) operates critical illness recovery hospitals, rehabilitation hospitals, outpatient rehabilitation clinics, and occupational health centers across the United States.

Select Medical reported revenues of $1.31 billion, up 7.8% year on year, falling short of analysts’ expectations by 8.9%. It was a slower quarter as it posted a significant miss of analysts’ EPS and sales volume estimates.

Select Medical delivered the weakest performance against analyst estimates in the group. As expected, the stock is down 10.8% since the results and currently trades at $16.99.

Read our full analysis of Select Medical’s results here.

Surgery Partners (NASDAQ: SGRY)

With more than 180 locations across 33 states serving as alternatives to traditional hospital settings, Surgery Partners (NASDAQ: SGRY) operates a national network of outpatient surgical facilities including ambulatory surgery centers and short-stay surgical hospitals.

Surgery Partners reported revenues of $864.4 million, up 17.5% year on year. This print topped analysts’ expectations by 4.3%. It was a strong quarter as it also logged a solid beat of analysts’ EPS estimates and a narrow beat of analysts’ sales volume estimates.

Surgery Partners delivered the biggest analyst estimates beat among its peers. The stock is down 3.9% since reporting and currently trades at $23.13.

Read our full, actionable report on Surgery Partners here, it’s free.

DaVita (NYSE: DVA)

With over 2,600 dialysis centers across the United States and a presence in 13 countries, DaVita (NYSE: DVA) operates a network of dialysis centers providing treatment and care for patients with chronic kidney disease and end-stage kidney disease.

DaVita reported revenues of $3.29 billion, up 4.7% year on year. This number surpassed analysts’ expectations by 0.9%. Taking a step back, it was a slower quarter as it produced a significant miss of analysts’ full-year EPS guidance estimates and sales volume in line with analysts’ estimates.

DaVita had the slowest revenue growth among its peers. The stock is down 14.9% since reporting and currently trades at $150.61.

Read our full, actionable report on DaVita here, it’s free.

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