Change Healthcare Inc. ( CHNG Quick Quote CHNG - Free Report) reported second-quarter fiscal 2022 adjusted earnings per share (EPS) of 35 cents, which beat the Zacks Consensus Estimate of 34 cents by 2.9%. The bottom line improved 9.4% on a year-over-year basis. Net loss per share was 11 cents in the quarter, slightly narrower than the year-ago quarter’s loss of 13 cents. Revenue Details
Revenues rose 9.4% from the prior-year period to $826.8 million in the reported quarter. The top line, however, missed the Zacks Consensus Estimate by 0.8%.
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 $363.4 million, up 2.4% on a year-over-year basis. Network Solutions Revenues at this segment were $215.6 million, up 17.1% year over year. Technology-Enabled Services Revenues at this segment were $231.9 million, which remained flat on a year-over-year basis. Postage and Eliminations Revenues at this segment totaled $19.1 million, down 20.7% year over year. Margin Analysis
Total operating expenses were $815.6 million, up 8.4% from the prior-year quarter.
In the quarter under review, Change Healthcare reported an operating income of $11.1 million, compared with $3.3 million in the year-ago quarter. Financial Position
The company exited the quarter with cash and cash equivalents of $80.4 million, compared with $109.1 million in the preceding quarter.
Cash provided operating activities at the end of the fiscal second quarter amounted to $261.4 million compared with $296.6 million in the year-ago period. Guidance
Given the proposed merger agreement (with OptumInsight), Change Healthcare will not be issuing financial guidance going forward.
Change Healthcare exited the second-quarter fiscal 2022 on a mixed note, wherein earnings beat the Zacks Consensus Estimate but revenues missed the same. The company exhibited robust performance across Software and Analytics and Network Solutions segments in the quarter under review. Addition of products and forming new data solutions partnerships were the business highlights in the quarter.
However, cut-throat competition remains a concern. Weak performance at the Postage and Eliminations segment is a woe. Higher operating expenses are concerning. 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 Quick Quote TMO - Free Report) , West Pharmaceutical Services, Inc. ( WST Quick Quote WST - Free Report) , and AngioDynamics, Inc. ( ANGO Quick Quote ANGO - Free Report) . While both Thermo Fisher and AngioDynamics sport a Zacks Rank of 1 (Strong Buy), West Pharmaceutical carries a Zacks Rank of 2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here. Thermo Fisher reported third-quarter 2021 adjusted EPS of $5.76, which beat the Zacks Consensus Estimate by 23.3%. Third-quarter revenues of $9.33 billion outpaced the consensus mark by 12%. West Pharmaceutical reported third-quarter 2021 adjusted EPS of $2.06, which surpassed the Zacks Consensus Estimate by 13.2%. Third-quarter revenues of $706.5 million outpaced the Zacks Consensus Estimate by 3.2%. AngioDynamics reported first-quarter fiscal 2022 loss per share of 2 cents, narrower than the Zacks Consensus Estimate of a loss of 5 cents. Revenues of $76.9 million surpassed the Zacks Consensus Estimate by 8.4%.