The Joint (JYNT) to Report Q4 Earnings: Here Are the Key Drivers
The Joint Corp. JYNT is set to report its fourth-quarter 2023 results on Mar 7, after the closing bell. It is expected to have witnessed increased clinic count and patient visits in the December quarter.
Earnings Surprise History
The Joint’s earnings beat the consensus estimate once in the prior four quarters and missed thrice, with the average surprise being 112.2%. This is depicted in the graph below:
The Joint Corp. Price and EPS Surprise
The Joint Corp. price-eps-surprise | The Joint Corp. Quote
In the last reported quarter, the franchisor of chiropractic clinics reported adjusted operating loss per share of 5 cents against the Zacks Consensus Estimate of an earnings of 4 cents due to higher expenses, partially offset by continued organic growth and an increased number of clinics.
Now, let’s see how things have shaped up prior to the fourth-quarter earnings announcement.
Factors to Note
Earlier, JYNT stated that it expects adjusted EBITDA for 2023 to be in the range of $11-12.5 million. It reported adjusted EBITDA of $11.5 million a year ago. It also announced that the company has treated 932,000 new patients in 2023, up 10.3% from the 2022 level. It witnessed 13.6 million patient visits in 2023, 11.5% higher than the year-ago figure.
The Zacks Consensus Estimate for the fourth quarter end total clinic count is pegged at 948, up from 838 in the year-ago period. The consensus mark for franchised clinics is pegged at 812, indicating an increase from 712 a year ago. Similarly, the consensus estimate for company-owned or managed clinics is pegged at 136, up from 126 in the previous-year quarter.
The increase in clinics is expected to have boosted The Joint’s patient visits and top line in the fourth quarter. The Zacks Consensus Estimate for revenues is pegged at $29.6 million, indicating an increase of 6.5% year over year. Higher royalty fees, franchise fees and revenues from company-owned or managed clinics are expected to be major growth drivers.
However, higher franchise and regional development cost of revenues, as well as IT cost of revenues are expected to have pushed the total cost of revenues up in the fourth quarter. Investments in supporting clinic growth and higher payroll costs in a tight labor market are expected to have led to higher general and administrative expenses in the fourth quarter.
Furthermore, increased selling and marketing expenses, as well as general and administrative expenses are likely to have contributed to higher overall expenses, affecting profit margins, making an earnings beat uncertain.
The Zacks Consensus Estimate for fourth-quarter earnings per share of 3 cents suggests a 25% decrease from the prior-year level. The estimate remained stable over the past week and witnessed no movement in estimate revisions.
Earnings Whispers
Our proven model does not conclusively predict an earnings beat for The Joint this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. That is not the case here, as you will see below.
Earnings ESP: The company currently has an Earnings ESP of 0.00%. This is because the Most Accurate Estimate currently stands at an earnings of 3 cents per share, in line with the Zacks Consensus Estimate.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: The Joint currently carries a Zacks Rank #3.
You can see the complete list of today’s Zacks #1 Rank stocks here.
How Other Stocks Performed
Here are some companies from the broader Medical space that have already reported earnings for the December quarter: The Cigna Group CI, Centene Corporation CNC and Molina Healthcare, Inc. MOH.
Cigna reported fourth-quarter 2023 adjusted earnings per share of $6.79, which beat the Zacks Consensus Estimate by 4.1% thanks to higher memberships and solid contributions from Evernorth Health Services and Cigna Healthcare businesses. However, the upside was partly offset by an elevated expense level resulting from the higher pharmacy and other service costs, medical costs and other benefit expenses.
Centene reported fourth-quarter 2023 adjusted earnings per share of 45 cents, which beat the Zacks Consensus Estimate by 4.7% on the back of growing marketplace membership, business wins and commercial growth. However, the positives were partially offset by rising operating expenses and lower Medicaid membership in CNC because of redeterminations.
Molina Healthcare reported fourth-quarter 2023 adjusted earnings per share of $4.38, which outpaced the Zacks Consensus Estimate by 1.6% thanks to improved premiums, contract wins and Medicare membership growth. However, the upside was partly offset by a decline in Medicaid and Marketplace membership and an elevated operating expense level.
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The Joint Corp. (JYNT) : Free Stock Analysis Report
