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LifePoint Health (LPNT) Down 4.8% Since Earnings Report: Can It Rebound?

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More than a month has gone by since the last earnings report for LifePoint Health, Inc. (LPNT - Free Report) . Shares have lost about 4.8% in that time frame, underperforming the market.

Will the recent negative trend continue leading up to the stock's next earnings release, or is it due for a breakout? Before we dive into how investors and analysts have reacted of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers.

LifePoint Health Q2 Earnings Beat Estimates, Up Y/Y

LifePoint reported earnings of 96 cents per share in second-quarter 2017 that surpassed the Zacks Consensus Estimate by 6.7%. Earnings also increased 35% year over year.

Net income for the quarter was $46 million, up 129% year over year.

Operational Update

Revenues from consolidated operations of approximately $1.6 billion missed the Zacks Consensus Estimate by 2.4% but inched up roughly 0.2% from the last-year quarter.

Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) for the quarter increased 9.6% to $192.2 million.
Equivalent admissions declined 1.5% year over year to 177,812.

Total expenses decreased 2.4% year over year to $1.5 billion, led by lower other operating expenses.

At the end of the second quarter the company had 72 hospitals, unchanged year over year.

Financial Update

As of Jun 30, 2017, the company had total assets of $6.3 billion, up 0.2% year over year. Cash and cash equivalents totaled $131 million, up 36% year over year.

As of Jun 30, 2017, long-term debt declined 0.3% to $2.9 billion from year-end 2016.

Cash flow from operations for the quarter was $111 million, up 68.2% year over year.

How Have Estimates Been Moving Since Then?

Analysts were quiet during the last month as none of them issued any earnings estimate revisions.

LifePoint Health, Inc. Price and Consensus

VGM Scores

At this time, LifePoint's stock has an average Growth Score of C, however its momentum is doing a bit better with an A. Charting a somewhat similar path, the stock was allocated a grade of A on the value side, putting it in the top quintile for this investment strategy.

Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.

Based on our scores, the stock is primarily suitable for value and momentum investors and to a lesser degree for those looking for growth.

Outlook

Notably, the stock has a Zacks Rank #3 (Hold). We expect in-line returns from the stock in the next few months.




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