Looking back on healthcare technology for providers stocks’ Q1 earnings, we examine this quarter’s best and worst performers, including Privia Health (NASDAQ: PRVA) and its peers.

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 5 healthcare technology for providers stocks we track reported a mixed Q1. As a group, revenues beat analysts’ consensus estimates by 4% 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 5.8% since the latest earnings results.

Privia Health (NASDAQ: PRVA)

Operating in 13 states and the District of Columbia with over 4,300 providers serving more than 4.8 million patients, Privia Health (NASDAQ: PRVA) is a technology-driven company that helps physicians optimize their practices, improve patient experiences, and transition to value-based care models.

Privia Health reported revenues of $480.1 million, up 15.6% year on year. This print exceeded analysts’ expectations by 6.5%. Overall, it was a strong quarter for the company with a solid beat of analysts’ EPS estimates and sales volume in line with analysts’ estimates.

Interestingly, the stock is up 4.2% since reporting and currently trades at $24.30.

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

Best Q1: 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 $261.4 million, down 8.9% year on year, outperforming analysts’ expectations by 7.4%. The business had a very strong quarter with an impressive beat of analysts’ EPS estimates and a solid beat of analysts’ full-year EPS guidance estimates.

Premier delivered the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 8% since reporting. It currently trades at $22.19.

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

Weakest Q1: 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 $620.4 million, up 53.4% year on year, falling short of analysts’ expectations by 2.5%. It was a slower quarter as it posted revenue guidance for next quarter meeting analysts’ expectations.

Astrana Health delivered the fastest revenue growth but had the weakest performance against analyst estimates and weakest full-year guidance update in the group. As expected, the stock is down 20.1% since the results and currently trades at $26.70.

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

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 $269.7 million, up 9.6% year on year. This number topped analysts’ expectations by 3.7%. However, it was a slower quarter as it produced full-year EBITDA guidance missing analysts’ expectations significantly and a significant miss of analysts’ EPS guidance for next quarter estimates.

The stock is down 5.8% since reporting and currently trades at $28.73.

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

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 $483.6 million, down 24.4% year on year. This print surpassed analysts’ expectations by 4.9%. Aside from that, it was a mixed quarter as it also logged full-year revenue guidance slightly topping analysts’ expectations but a significant miss of analysts’ EPS estimates.

Evolent Health achieved the highest full-year guidance raise but had the slowest revenue growth among its peers. The stock is down 15.6% since reporting and currently trades at $9.09.

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

Market Update

In response to the Fed’s rate hikes in 2022 and 2023, inflation has been gradually trending down from its post-pandemic peak, trending closer to the Fed’s 2% target. Despite higher borrowing costs, the economy has avoided flashing recessionary signals. This is the much-desired soft landing that many investors hoped for. The recent rate cuts (0.5% in September and 0.25% in November 2024) have bolstered the stock market, making 2024 a strong year for equities. Donald Trump’s presidential win in November sparked additional market gains, sending indices to record highs in the days following his victory. However, debates continue over possible tariffs and corporate tax adjustments, raising questions about economic stability in 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.

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