U.S. Markets open in 4 hrs 52 mins
  • S&P Futures

    3,777.25
    -44.00 (-1.15%)
     
  • Dow Futures

    30,707.00
    -292.00 (-0.94%)
     
  • Nasdaq Futures

    11,529.25
    -161.75 (-1.38%)
     
  • Russell 2000 Futures

    1,700.10
    -21.30 (-1.24%)
     
  • Crude Oil

    110.00
    +0.22 (+0.20%)
     
  • Gold

    1,815.20
    -2.30 (-0.13%)
     
  • Silver

    20.67
    -0.07 (-0.35%)
     
  • EUR/USD

    1.0447
    +0.0003 (+0.0313%)
     
  • 10-Yr Bond

    3.0930
    0.0000 (0.00%)
     
  • Vix

    29.28
    +0.92 (+3.24%)
     
  • GBP/USD

    1.2146
    +0.0024 (+0.1956%)
     
  • USD/JPY

    136.2060
    -0.3390 (-0.2483%)
     
  • BTC-USD

    19,328.02
    -754.83 (-3.76%)
     
  • CMC Crypto 200

    415.19
    -24.48 (-5.57%)
     
  • FTSE 100

    7,188.65
    -123.67 (-1.69%)
     
  • Nikkei 225

    26,393.04
    -411.56 (-1.54%)
     

LHC Group (LHCG) Q1 Earnings Beat Estimates, Revenues Miss

  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
·4 min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.

LHC Group, Inc. LHCG reported first-quarter 2022 adjusted earnings per share (EPS) of $1.09, which beat the Zacks Consensus Estimate of $1.05 by 3.8%. The bottom line declined 21.6% year over year.

GAAP EPS was 64 cents in the quarter, down 41.8% on a year-over-year basis.

Revenue Details

The company reported net service revenues of $571.5 million in the quarter, which missed the Zacks Consensus Estimate by 0.3%. However, the top line improved 8.9% on a year-over-year basis.

Q1 Highlights

In the first quarter, total organic growth in home health admissions rose 1.6% year over year, while organic growth in hospice admissions rose 4%.

LHC Group, Inc. Price, Consensus and EPS Surprise

LHC Group, Inc. Price, Consensus and EPS Surprise
LHC Group, Inc. Price, Consensus and EPS Surprise

LHC Group, Inc. price-consensus-eps-surprise-chart | LHC Group, Inc. Quote

Home health service revenues were $387.9 million, up 3.8% year over year. Meanwhile, hospice services revenues amounted to $101.9 million, up 62.4%.

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 $221.1 million, up 3%. Gross margin was 38.7%, which contracted 220 basis points (bps) on a year-over-year basis.

Operating profit was $35.5 million, down 30.5% from the prior-year quarter. Operating margin was 6.2%, down 350 bps.

Financial Position

LHC Group exited the first quarter with cash amounting to $7.7 million, down from $9.8 million sequentially.

Net cash used in operating activities at the end of the first quarter totaled $64.9 million against net cash provided in operating activities of $44.8 million in the year-ago quarter.

Wrapping Up

LHC Group exited the first quarter on a mixed note, wherein earnings beat the Zacks Consensus Estimate, but revenues missed the same. The company continues to gain from home health as well as hospice admissions that witnessed organic growth on a year-over-year basis. Robust revenue performance across home health and hospice is encouraging.

Nevertheless, contraction in both gross margin and operating margins is concerning. The year-over-year decline in the bottom line is a woe. A highly competitive home healthcare market remains a headwind.

Zacks Rank

LHC Group carries a Zacks Rank #3 (Hold).

Key Picks

Some better-ranked stocks in the broader medical space that have announced quarterly results are Omnicell, Inc. OMCL, UnitedHealth Group Incorporated UNH and Alkermes plc ALKS.

Omnicell, carrying a Zacks Rank #2 (Buy), reported first-quarter 2022 adjusted EPS of 83 cents, which beat the Zacks Consensus Estimate by 16.9%. Revenues of $318.8 million outpaced the consensus mark by 0.7%. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

Omnicell has an estimated long-term growth rate of 16%. OMCL's earnings surpassed estimates in three of the trailing four quarters and missed once, the average surprise being 13.4%.

UnitedHealth, carrying a Zacks Rank #2, reported first-quarter 2022 adjusted EPS of $5.49, which beat the Zacks Consensus Estimate by 1.7%. Revenues of $80.1 billion outpaced the consensus mark by 1.9%.

UnitedHealth has an estimated long-term growth rate of 14.8%. UNH's earnings surpassed estimates in each of the trailing four quarters, the average surprise being 3.7%.

Alkermes reported first-quarter 2022 adjusted EPS of 12 cents, which beat the Zacks Consensus Estimate of a penny. First-quarter revenues of $278.6 million outpaced the Zacks Consensus Estimate by 6.2%. It currently sports a Zacks Rank #1.

Alkermes has an estimated long-term growth rate of 25.1%. ALKS' earnings surpassed estimates in each of the trailing four quarters, the average surprise being 350.5%.


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

UnitedHealth Group Incorporated (UNH) : Free Stock Analysis Report

Alkermes plc (ALKS) : Free Stock Analysis Report

Omnicell, Inc. (OMCL) : Free Stock Analysis Report

LHC Group, Inc. (LHCG) : Free Stock Analysis Report

To read this article on Zacks.com click here.