Quarterly earnings results are a good time to check in on a company’s progress, especially compared to its peers in the same sector. Today we are looking at Omnicell (NASDAQ: OMCL) and the best and worst performers in the healthcare technology for providers industry.

The healthcare technology industry focuses on delivering software, data analytics, and workflow solutions to hospitals, clinics, and other care facilities. These companies enable providers to streamline operations, optimize patient outcomes, and transition to value-based care models. They boast subscription-based revenues or long-term contracts, providing financial stability and growth potential. However, they face challenges such as lengthy sales cycles, significant upfront investment in technology development, and reliance on providers’ adoption of new tools, which can be hindered by budget constraints or resistance to change. Over the next few years, the sector is poised for growth as providers increasingly prioritize digital transformation and efficiency in response to rising healthcare costs and patient demand for seamless care. Tailwinds include the growing adoption of AI-driven tools for patient engagement and operational improvements, government incentives for digitization, and the expansion of telehealth and remote patient monitoring. However, headwinds such as tightening hospital budgets, cybersecurity threats, and the fragmented nature of healthcare systems could slow adoption.

The 6 healthcare technology for providers stocks we track reported a slower Q4. As a group, revenues beat analysts’ consensus estimates by 3.1% 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 12.6% since the latest earnings results.

Omnicell (NASDAQ: OMCL)

Driven by the vision of an "Autonomous Pharmacy" with zero medication errors, Omnicell (NASDAQ: OMCL) provides medication management automation and adherence tools that help healthcare systems and pharmacies reduce errors and improve efficiency.

Omnicell reported revenues of $306.9 million, up 18.6% year on year. This print exceeded analysts’ expectations by 2.2%. Despite the top-line beat, it was still a slower quarter for the company with EBITDA guidance for next quarter missing analysts’ expectations significantly and a miss of analysts’ full-year EPS guidance estimates.

“We delivered solid financial results for the fourth quarter of 2024, including returning to year-over-year revenue growth. We are pleased with the improved execution of the business throughout 2024, including strong free cash flows achieved in the year,” stated Randall Lipps, chairman, president, chief executive officer, and founder of Omnicell.

The stock is down 31.9% since reporting and currently trades at $30.23.

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

Best Q4: Phreesia (NYSE: PHR)

Founded in 2005 to streamline the traditionally paper-heavy patient check-in process, Phreesia (NYSE: PHR) provides software solutions that automate patient intake, registration, and payment processes for healthcare organizations while improving patient engagement in their care.

Phreesia reported revenues of $109.7 million, up 15.4% year on year, outperforming analysts’ expectations by 0.7%. The business had a strong quarter with a solid beat of analysts’ EPS estimates and full-year EBITDA guidance topping analysts’ expectations.

The market seems content with the results as the stock is up 1.4% since reporting. It currently trades at $24.21.

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

Weakest Q4: Evolent Health (NYSE: EVH)

Founded in 2011 to transform how healthcare is delivered to patients with complex needs, Evolent Health (NYSE: EVH) provides specialty care management services and technology solutions that help health plans and providers deliver better care for patients with complex conditions.

Evolent Health reported revenues of $646.5 million, up 16.3% year on year, falling short of analysts’ expectations by 0.7%. It was a softer quarter as it posted a significant miss of analysts’ EPS estimates and EBITDA guidance for next quarter missing analysts’ expectations significantly.

Evolent Health delivered the weakest performance against analyst estimates and weakest full-year guidance update in the group. As expected, the stock is down 14.9% since the results and currently trades at $9.13.

Read our full analysis of Evolent Health’s results here.

Premier (NASDAQ: PINC)

Operating one of the largest healthcare group purchasing organizations in the United States with over 4,350 hospital members, Premier (NASDAQ: PINC) is a technology-driven healthcare improvement company that helps hospitals, health systems, and other providers reduce costs and improve clinical outcomes.

Premier reported revenues of $240.3 million, down 14.2% year on year. This number met analysts’ expectations. Zooming out, it was a slower quarter as it produced a significant miss of analysts’ EPS estimates.

Premier had the slowest revenue growth among its peers. The stock is down 9.4% since reporting and currently trades at $20.30.

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

Astrana Health (NASDAQ: ASTH)

Formerly known as Apollo Medical Holdings until early 2024, Astrana Health (NASDAQ: ASTH) operates a technology-powered healthcare platform that enables physicians to deliver coordinated care while successfully participating in value-based payment models.

Astrana Health reported revenues of $665.2 million, up 88.4% year on year. This print topped analysts’ expectations by 6.9%. More broadly, it was a mixed quarter as it also logged full-year revenue guidance beating analysts’ expectations.

Astrana Health delivered the fastest revenue growth and highest full-year guidance raise among its peers. The stock is down 15.8% since reporting and currently trades at $29.21.

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

Market Update

As a result of the Fed’s rate hikes in 2022 and 2023, inflation has come down from frothy levels post-pandemic. The general rise in the price of goods and services is trending towards the Fed’s 2% goal as of late, which is good news. The higher rates that fought inflation also didn't slow economic activity enough to catalyze a recession. So far, soft landing. This, combined with recent rate cuts (half a percent in September 2024 and a quarter percent in November 2024) have led to strong stock market performance in 2024. The icing on the cake for 2024 returns was Donald Trump’s victory in the U.S. Presidential Election in early November, sending major indices to all-time highs in the week following the election. Still, debates around the health of the economy and the impact of potential tariffs and corporate tax cuts remain, leaving much uncertainty around 2025.

Want to invest in winners with rock-solid fundamentals? Check out our Top 6 Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

Join Paid Stock Investor Research

Help us make StockStory more helpful to investors like yourself. Join our paid user research session and receive a $50 Amazon gift card for your opinions. Sign up here.