OPCH Earnings Prediction
The chart below shows how OPCH performed 10 days before and after its earnings report, based on data from the past quarters. Typically, OPCH sees a +1.59% change in stock price 10 days leading up to the earnings, and a -1.80% change 10 days following the report. On the earnings day itself, the stock moves by -1.36%. This data can give you a slight idea of what to expect for the next quarter's release.
OPCH Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
1.28B
16.97%
4.19%
Gross Margin
18.93%
-13.52%
-0.94%
Operating Margin
6.66%
-10.24%
1.37%
Net Margin
4.21%
-18.25%
-2.55%
EPS
0.31
0.00%
3.33%
No Data Available
OPCH Earnings Analysis
Option Care Health, Inc. Common Stock Corporation (OPCH.O) Earnings Conference Call
Positive
Strong Revenue Growth Drivers: Revenue growth of 17% driven by strong growth in rare and orphan portfolios, benefiting from continued growth in established therapeutic categories.
Gross Profit Increase: Generated approximately $7.3 million more in gross profit compared to the second quarter, consistent with expectations.
Adjusted EBITDA Growth: Adjusted EBITDA of $115.6 million represented 9% of revenue and 5.3% growth over the prior year, including transitory procurement benefits.
Strong Cash Flow Generation: Cash flow generation continues to be strong, generating $160.4 million in cash flow from operations in the quarter.
Cash Balances and Repurchase: Finished the quarter with cash balances of $483 million after deploying approximately $42 million towards share repurchase.
Negative
Net Debt Leverage Ratio: The company reported a net debt-to-EBITDA leverage ratio of 1.5x, the lowest reported level since the merger with BioScript in 2019, indicating increased financial strain.
Cash Flow Challenges: Despite solid revenue and earnings results, the company faced delayed collections from patients, impacting cash flow generation.
Operational Disruptions from Hurricane: The company continues to experience disruptions in operations due to Hurricane impacts, which affected patient payment obligations and operational efficiency.
Supply Chain Disruption Impact: The third quarter results were impacted by a significant disruption in the supply chain from Hurricane impacts, leading to operational challenges.
Supply Chain Disruptions Impact: The company acknowledged that the ongoing supply chain disruptions limit their ability to onboard new patients, particularly those requiring intravenous antibiotics.
OPCH FAQs
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OPCH Earning Call Sentiment
Option Care Health, Inc. (OPCH) Q3 2024 Earnings Call Transcript
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OPCH.O
0.98%Positive
The earnings call presents mixed signals. Positive factors include strong revenue growth (17% YoY), increased revenue expectations, and a low net debt-to-EBITDA ratio. However, operational disruptions from a hurricane, supply chain challenges, and potential regulatory impacts on STELARA pose risks. The Q&A section reveals management's reluctance to provide specifics, indicating uncertainty. Despite the share repurchase and cash flow strength, these concerns balance the positives, leading to a neutral sentiment. Given the market cap, a moderate reaction is expected, resulting in a neutral prediction.
