It has been about a month since the last earnings report for LHC Group . Shares have added about 0.2% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is LHC due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
LHC Group Q2 Earnings & Revenues Miss Estimates
LHC Group reported second-quarter 2022 adjusted earnings per share of 98 cents, which missed the Zacks Consensus Estimate of $1.32 by 25.8%. The bottom line declined 39.5% year over year.
GAAP earnings per share was 35 cents in the quarter, down 70.8% on a year-over-year basis.
Revenue Details
The company reported net service revenues of $576.2 million in the quarter, which missed the Zacks Consensus Estimate by 3.8%. However, the top line improved 5% on a year-over-year basis.
Q2 Highlights
In the second quarter, total home health admissions declined 4.3% year over year organically, while organic growth in hospice admissions rose 5.5%.
Home health service revenues were $392.8 million, down 0.9% year over year. Meanwhile, hospice services revenues amounted to $102.6 million, up 60.8%.
Strategic Update
On May 3, 2022, the company made an announcement that it has finalized a joint venture partnership for in-home services with Thomasville, GA-based Archbold Medical Center.
Margin Analysis
Gross profit in the quarter totaled $222.3 million, down 2.5%. Gross margin was 38.6%, which contracted 320 basis points (bps) on a year-over-year basis.
Operating profit was $25 million, down 58.4% from the prior-year quarter. Operating margin was 4.3%, down 670 bps.
Financial Position
LHC Group exited the second quarter with cash amounting to $27.4 million, up from $7.7 million sequentially.
Net cash used in operating activities at the end of the second quarter totaled $2.3 million against net cash used in operating activities of $11.8 million in the year-ago quarter.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates review.
The consensus estimate has shifted -11.67% due to these changes.
VGM Scores
Currently, LHC has a poor Growth Score of F, a grade with the same score on the momentum front. Following the exact same course, the stock was allocated a grade of F on the value side, putting it in the fifth quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise LHC has a Zacks Rank #5 (Strong Sell). We expect a below average return from the stock in the next few months.
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LHC (LHCG) Up 0.2% Since Last Earnings Report: Can It Continue?
It has been about a month since the last earnings report for LHC Group . Shares have added about 0.2% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is LHC due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
LHC Group Q2 Earnings & Revenues Miss Estimates
LHC Group reported second-quarter 2022 adjusted earnings per share of 98 cents, which missed the Zacks Consensus Estimate of $1.32 by 25.8%. The bottom line declined 39.5% year over year.
GAAP earnings per share was 35 cents in the quarter, down 70.8% on a year-over-year basis.
Revenue Details
The company reported net service revenues of $576.2 million in the quarter, which missed the Zacks Consensus Estimate by 3.8%. However, the top line improved 5% on a year-over-year basis.
Q2 Highlights
In the second quarter, total home health admissions declined 4.3% year over year organically, while organic growth in hospice admissions rose 5.5%.
Home health service revenues were $392.8 million, down 0.9% year over year. Meanwhile, hospice services revenues amounted to $102.6 million, up 60.8%.
Strategic Update
On May 3, 2022, the company made an announcement that it has finalized a joint venture partnership for in-home services with Thomasville, GA-based Archbold Medical Center.
Margin Analysis
Gross profit in the quarter totaled $222.3 million, down 2.5%. Gross margin was 38.6%, which contracted 320 basis points (bps) on a year-over-year basis.
Operating profit was $25 million, down 58.4% from the prior-year quarter. Operating margin was 4.3%, down 670 bps.
Financial Position
LHC Group exited the second quarter with cash amounting to $27.4 million, up from $7.7 million sequentially.
Net cash used in operating activities at the end of the second quarter totaled $2.3 million against net cash used in operating activities of $11.8 million in the year-ago quarter.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates review.
The consensus estimate has shifted -11.67% due to these changes.
VGM Scores
Currently, LHC has a poor Growth Score of F, a grade with the same score on the momentum front. Following the exact same course, the stock was allocated a grade of F on the value side, putting it in the fifth quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise LHC has a Zacks Rank #5 (Strong Sell). We expect a below average return from the stock in the next few months.