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Option Care Health (OPCH) Reports Earnings Tomorrow: What To Expect

OPCH Cover Image

Alternate site health provider Option Care Health (NASDAQ: OPCH) will be announcing earnings results this Wednesday before the bell. Here’s what to look for.

Option Care Health beat analysts’ revenue expectations by 6.1% last quarter, reporting revenues of $1.33 billion, up 16.3% year on year. It was a very strong quarter for the company, with a solid beat of analysts’ EPS estimates and full-year revenue guidance slightly topping analysts’ expectations.

Is Option Care Health a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting Option Care Health’s revenue to grow 10.4% year on year to $1.35 billion, slowing from the 14.8% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.40 per share.

Option Care Health Total Revenue

The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Option Care Health has a history of exceeding Wall Street’s expectations, beating revenue estimates every single time over the past two years by 3.5% on average.

Looking at Option Care Health’s peers in the healthcare providers & services segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Tenet Healthcare delivered year-on-year revenue growth of 3.3%, beating analysts’ expectations by 2.3%, and The Ensign Group reported revenues up 18.5%, topping estimates by 0.7%. Tenet Healthcare traded down 9.4% following the results while The Ensign Group was up 8.7%.

Read our full analysis of Tenet Healthcare’s results here and The Ensign Group’s results here.

Investors in the healthcare providers & services segment have had steady hands going into earnings, with share prices flat over the last month. Option Care Health is down 9.1% during the same time and is heading into earnings with an average analyst price target of $38.56 (compared to the current share price of $29.53).

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