Wrapping up Q4 earnings, we look at the numbers and key takeaways for the healthcare providers & services stocks, including Cardinal Health (NYSE: CAH) and its peers.
The healthcare providers and services sector, from insurers to hospitals, benefits from consistent demand, generating stable revenue through premiums and patient services. However, it faces challenges from high operational and labor costs, reimbursement pressures that squeeze margins, and regulatory uncertainty. Looking ahead, an aging population with more chronic diseases and a shift toward value-based care create tailwinds. Digitization via telehealth, data analytics, and personalized medicine offers new revenue streams. Nonetheless, headwinds persist, including clinical labor shortages, ongoing reimbursement cuts, and regulatory scrutiny over pricing and quality.
The 40 healthcare providers & services stocks we track reported a mixed Q4. As a group, revenues beat analysts’ consensus estimates by 1.2% while next quarter’s revenue guidance was in line.
In light of this news, share prices of the companies have held steady as they are up 1.5% on average since the latest earnings results.
Cardinal Health (NYSE: CAH)
Operating as a critical link in the healthcare supply chain since 1979, Cardinal Health (NYSE: CAH) distributes pharmaceuticals and manufactures medical products for hospitals, pharmacies, and healthcare providers across the global healthcare supply chain.
Cardinal Health reported revenues of $65.63 billion, up 18.8% year on year. This print exceeded analysts’ expectations by 1.2%. Overall, it was a strong quarter for the company with an impressive beat of analysts’ full-year EPS guidance estimates and a beat of analysts’ EPS estimates.
"Our strong second-quarter performance reflects at least double-digit segment profit growth across all five of our operating segments," said Jason Hollar, CEO of Cardinal Health.
Interestingly, the stock is up 10.1% since reporting and currently trades at $227.78.
Best Q4: RadNet (NASDAQ: RDNT)
With over 350 imaging facilities across seven states and a growing artificial intelligence division, RadNet (NASDAQ: RDNT) operates a network of outpatient diagnostic imaging centers across the United States, offering services like MRI, CT scans, PET scans, mammography, and X-rays.
RadNet reported revenues of $547.7 million, up 14.8% year on year, outperforming analysts’ expectations by 5.8%. The business had an exceptional quarter with a solid beat of analysts’ revenue estimates and a beat of analysts’ EPS estimates.
The market seems content with the results as the stock is up 3.8% since reporting. It currently trades at $72.61.
Is now the time to buy RadNet? Access our full analysis of the earnings results here, it’s free.
Weakest Q4: Chemed (NYSE: CHE)
With a unique business model combining end-of-life care and household services, Chemed (NYSE: CHE) operates two distinct businesses: VITAS, which provides hospice care for terminally ill patients, and Roto-Rooter, which offers plumbing and water restoration services.
Chemed reported revenues of $639.3 million, flat year on year, falling short of analysts’ expectations by 3%. It was a disappointing quarter as it posted a significant miss of analysts’ full-year EPS guidance estimates and a significant miss of analysts’ revenue estimates.
As expected, the stock is down 9% since the results and currently trades at $424.69.
Read our full analysis of Chemed’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 $885 million, up 2.4% year on year. This number topped analysts’ expectations by 1.9%. Zooming out, it was a softer quarter as it produced full-year revenue guidance missing analysts’ expectations significantly and full-year EBITDA guidance missing analysts’ expectations significantly.
Surgery Partners had the weakest full-year guidance update among its peers. The stock is down 13.3% since reporting and currently trades at $13.78.
Read our full, actionable report on Surgery Partners here, it’s free.
Humana (NYSE: HUM)
With over 80% of its revenue derived from federal government contracts, Humana (NYSE: HUM) provides health insurance plans and healthcare services to approximately 17 million members, with a strong focus on Medicare Advantage plans for seniors.
Humana reported revenues of $32.64 billion, up 11.8% year on year. This result beat analysts’ expectations by 1.8%. Taking a step back, it was a slower quarter as it logged a significant miss of analysts’ full-year EPS guidance estimates.
The company added 7,500 customers to reach a total of 15 million. The stock is flat since reporting and currently trades at $183.09.
Read our full, actionable report on Humana here, it’s free
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