Key Takeaways:
Addus HomeCare Corp. (NASDAQ: ADUS) reported first-quarter adjusted earnings of $1.62 per share, beating analyst estimates by $0.10 and growing 14% from a year earlier.
The results surpassed Wall Street profit expectations, though the company’s revenue performance came in just below forecasts. The average estimate of five analysts surveyed by Zacks Investment Research was for earnings of $1.52 per share.
The provider of home-based care services posted revenue of $363.6 million for the period, missing the consensus estimate of $364.9 million. This compares to earnings of $1.42 per share in the same quarter of the previous year. On a GAAP basis, the Frisco, Texas-based company had a profit of $1.36 per share.
Despite the earnings beat, Addus HomeCare shares have declined almost 7% since the beginning of the year. The stock closed Monday at $100.12, a drop of nearly 5% over the last 12 months, and currently trades well below the average analyst price target of $139.46.
The slight revenue miss for Addus comes as some peers in the senior health and hospice segment reported stronger top-line results. BrightSpring Health Services Inc. and Chemed Corp. both recently topped revenue expectations.
Addus HomeCare, which provides personal care, nursing, and rehabilitative therapy services in the home, has missed Wall Street’s revenue estimates multiple times over the last two years, according to pre-earnings analysis.
The mixed results highlight the company's challenge in meeting top-line growth expectations amid a complex operating environment for health services. Investors will be watching the company's next earnings release for signs of revenue acceleration and margin management to close the gap between its current stock price and analyst targets.
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