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Change Healthcare (CHNG) Q2 Earnings & Revenues Top Estimates
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Change Healthcare Inc. reported second-quarter fiscal 2021 adjusted earnings per share of 32 cents, which beat the Zacks Consensus Estimate by 28%. The bottom line also improved 18.5% year over year.
Revenue Details
Revenues declined 5% from the prior-year period to $755.9 million in the reported quarter. However, the top line surpassed the Zacks Consensus Estimate by 2%.
Segmental Analysis
Change Healthcare operates through three segments — Software and Analytics, Network Solutions, Technology-Enabled Services and Postage and Eliminations.
Software and Analytics
Revenues at this segment totaled $354.9 million, down 4.9% on a year-over-year basis.
Network Solutions
Revenues at this segment were $184.1 million, up 27.6% year over year.
Change Healthcare Inc. Price, Consensus and EPS Surprise
Revenues at this segment came in at $231.8 million, down 6.3% year over year.
Postage and Eliminations
Revenues at this segment came in at $24.1 million, down 22.9% year over year.
Margin Analysis
Total operating expenses were $752.6 million, up 5.9% from the prior-year quarter.
In the quarter under review, Change Healthcare reported operating income of $3.3 million, which soared 96.1% from the year-ago quarter.
Financial Position
The company exited the quarter with cash and cash equivalents of $167.5 million compared with $178.4 million in the preceding quarter.
Cumulative cash provided operating activities at the end of second-quarter fiscal 2021 amounted to $296.6 million compared with cash flow from operating activities of $223.9 million in the year-ago period.
Guidance
Due to uncertainty surrounding the COVID-19 pandemic, Change Healthcare has only issued quarterly guidance.
For third-quarter fiscal 2021, the company projects Solutions revenues between $725 million and $745 million.
Adjusted EPS is estimated between 28 cents and 33 cents. The Zacks Consensus Estimate for the same stands at 29 cents.
Wrapping Up
Change Healthcare exited second-quarter fiscal 2021 on a strong note, with both earnings and revenues beating the Zacks Consensus Estimate. The Network Solutions recorded solid performance in the quarter under review. Strong guidance also instills investor optimism in the stock.
During the quarter under review, the company launched a new consumer engagement and revenue cycle management solution that will help consumers to obtain COVID-19 testing in their local pharmacies.
Also, Change Healthcare introduced new innovative Artificial Intelligence models that aid in the extraction of helpful diagnostic information from text in electronic health records (EHRs).
Additionally, the company acquired Nucleus – involved in the building of advanced, fully enabled, cloud-native imaging and workflow technology — and Prometheus Analytics, which is the industry-standard when it comes to value-based care reimbursement models based on medical episodes of care. Both these buyouts were made during the fiscal second-quarter.
These developments have impacted the company’s overall performance and are likely to accelerate growth in the near term.
However, cut-throat competition remains a concern. Also, weak performance of the Software and Analytics, and Technology-Enabled Services segments is a woe. Decline in operating income remains a headwind.
Zacks Rank
Currently, Change Healthcare carries a Zacks Rank #3 (Hold).
Earnings of Other MedTech Majors at a Glance
Some better-ranked stocks in the broader medical space that have already announced their quarterly results are Thermo Fisher Scientific Inc. (TMO - Free Report) , Align Technology, Inc. (ALGN - Free Report) and AngioDynamics, Inc. (ANGO - Free Report) . While Align Technology sports a Zacks Rank of 1 (Strong Buy), both Thermo Fisher and AngoDynamics carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Align Technology reported third-quarter 2020 adjusted EPS of $2.25, which surpassed the Zacks Consensus Estimate by 281.4%. Revenues of $734.1 million outpaced the consensus mark by 38%.
Thermo Fisher reported third-quarter 2020 adjusted EPS of $5.63, beating the Zacks Consensus Estimate by 28.8%. Revenues of $8.52 billion surpassed the consensus mark by 10%.
AngioDynamics reported first-quarter fiscal 2021 adjusted EPS of 2 cents against the Zacks Consensus Estimate of a loss per share of 6 cents. Revenues of $70.2 million beat the consensus mark by 6.9%.
These Stocks Are Poised to Soar Past the Pandemic
The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.
Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.
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Change Healthcare (CHNG) Q2 Earnings & Revenues Top Estimates
Change Healthcare Inc. reported second-quarter fiscal 2021 adjusted earnings per share of 32 cents, which beat the Zacks Consensus Estimate by 28%. The bottom line also improved 18.5% year over year.
Revenue Details
Revenues declined 5% from the prior-year period to $755.9 million in the reported quarter. However, the top line surpassed the Zacks Consensus Estimate by 2%.
Segmental Analysis
Change Healthcare operates through three segments — Software and Analytics, Network Solutions, Technology-Enabled Services and Postage and Eliminations.
Software and Analytics
Revenues at this segment totaled $354.9 million, down 4.9% on a year-over-year basis.
Network Solutions
Revenues at this segment were $184.1 million, up 27.6% year over year.
Change Healthcare Inc. Price, Consensus and EPS Surprise
Change Healthcare Inc. price-consensus-eps-surprise-chart | Change Healthcare Inc. Quote
Technology-Enabled Services
Revenues at this segment came in at $231.8 million, down 6.3% year over year.
Postage and Eliminations
Revenues at this segment came in at $24.1 million, down 22.9% year over year.
Margin Analysis
Total operating expenses were $752.6 million, up 5.9% from the prior-year quarter.
In the quarter under review, Change Healthcare reported operating income of $3.3 million, which soared 96.1% from the year-ago quarter.
Financial Position
The company exited the quarter with cash and cash equivalents of $167.5 million compared with $178.4 million in the preceding quarter.
Cumulative cash provided operating activities at the end of second-quarter fiscal 2021 amounted to $296.6 million compared with cash flow from operating activities of $223.9 million in the year-ago period.
Guidance
Due to uncertainty surrounding the COVID-19 pandemic, Change Healthcare has only issued quarterly guidance.
For third-quarter fiscal 2021, the company projects Solutions revenues between $725 million and $745 million.
Adjusted EPS is estimated between 28 cents and 33 cents. The Zacks Consensus Estimate for the same stands at 29 cents.
Wrapping Up
Change Healthcare exited second-quarter fiscal 2021 on a strong note, with both earnings and revenues beating the Zacks Consensus Estimate. The Network Solutions recorded solid performance in the quarter under review. Strong guidance also instills investor optimism in the stock.
During the quarter under review, the company launched a new consumer engagement and revenue cycle management solution that will help consumers to obtain COVID-19 testing in their local pharmacies.
Also, Change Healthcare introduced new innovative Artificial Intelligence models that aid in the extraction of helpful diagnostic information from text in electronic health records (EHRs).
Additionally, the company acquired Nucleus – involved in the building of advanced, fully enabled, cloud-native imaging and workflow technology — and Prometheus Analytics, which is the industry-standard when it comes to value-based care reimbursement models based on medical episodes of care. Both these buyouts were made during the fiscal second-quarter.
These developments have impacted the company’s overall performance and are likely to accelerate growth in the near term.
However, cut-throat competition remains a concern. Also, weak performance of the Software and Analytics, and Technology-Enabled Services segments is a woe. Decline in operating income remains a headwind.
Zacks Rank
Currently, Change Healthcare carries a Zacks Rank #3 (Hold).
Earnings of Other MedTech Majors at a Glance
Some better-ranked stocks in the broader medical space that have already announced their quarterly results are Thermo Fisher Scientific Inc. (TMO - Free Report) , Align Technology, Inc. (ALGN - Free Report) and AngioDynamics, Inc. (ANGO - Free Report) . While Align Technology sports a Zacks Rank of 1 (Strong Buy), both Thermo Fisher and AngoDynamics carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Align Technology reported third-quarter 2020 adjusted EPS of $2.25, which surpassed the Zacks Consensus Estimate by 281.4%. Revenues of $734.1 million outpaced the consensus mark by 38%.
Thermo Fisher reported third-quarter 2020 adjusted EPS of $5.63, beating the Zacks Consensus Estimate by 28.8%. Revenues of $8.52 billion surpassed the consensus mark by 10%.
AngioDynamics reported first-quarter fiscal 2021 adjusted EPS of 2 cents against the Zacks Consensus Estimate of a loss per share of 6 cents. Revenues of $70.2 million beat the consensus mark by 6.9%.
These Stocks Are Poised to Soar Past the Pandemic
The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.
Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.
See the 5 high-tech stocks now>>