Investors interested in Medical - Products stocks are likely familiar with AdaptHealth Corp. (AHCO) and Lonza Group Ag (LZAGY) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The proven Zacks Rank emphasizes companies with positive estimate revisio ...

Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors use a variety of methods, including tried-and-true valuation metrics, to find these stocks.Zacks has dev ...

Core Insights - AdaptHealth Corp. (AHCO) and Lonza Group Ag (LZAGY) are both considered for undervalued stock opportunities in the Medical - Products sector [1] - Both companies currently hold a Zacks Rank of 2 (Buy), indicating a positive earnings outlook due to favorable analyst estimate revisions [1] Valuation Metrics - AHCO has a forward P/E ratio of 10.15, while LZAGY has a significantly higher forward P/E of 38.84 [2] - AHCO's PEG ratio is 1.37, indicating a more favorable valuation compared to LZAGY's PEG ratio of 2.33 [2] - AHCO's P/B ratio stands at 0.91, contrasting with LZAGY's P/B ratio of 4.31, suggesting that AHCO is undervalued relative to its book value [2] Value Grades - AHCO has received a Value grade of A, while LZAGY has a Value grade of C, indicating that AHCO is currently the superior value option based on these metrics [3]

Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use tried-and-true metrics and fundamental a ...

Core Viewpoint - AdaptHealth Corp (NASDAQ: AHCO) continues to be rated as a hold due to low embedded expectations, low quality of returns, and valuations that do not support significant growth potential, with a current estimated value of $11-$12 per share [4][5][14]. Company Overview - AHCO specializes in healthcare-at-home solutions, focusing on home medical equipment and medical supplies, with a service network of approximately 670 locations across 47 states, servicing over 4 million patients annually [5]. - The company has significant potential in the sleep therapy market, particularly with its CPAP and BiPAP divisions, amidst an estimated 1 billion undiagnosed cases of obstructive sleep apnea globally [5]. Financial Performance - In Q2 FY'24, AHCO reported sales of $806 million, reflecting a year-over-year increase of 1.6% driven by a 6.5% growth in sleep therapy sales [6]. - Management projects FY'24 sales between $3.2 billion and $3.3 billion, with adjusted EBITDA of $700 million at the upper end of the range [6]. - Free cash flow for the quarter was approximately $117 million, exceeding expectations of $94 million, with a net leverage ratio of about 3x [6]. Market Challenges - The company faces headwinds from the introduction of GLP-1 weight loss drugs, which may impact the respiratory care market by potentially reducing the prevalence of obstructive sleep apnea [6][7]. - Diabetes sales were $151 million, with management noting a projected $10 million compression in pump supplies sales due to patients delaying new purchases [6]. Valuation Insights - AHCO is currently valued at approximately 1x EV/IC, which is considered fair given the company's low return on invested capital (ROIC) of less than 10% and lack of reinvestment into the business [8][9]. - The projected economic earnings for FY'24 are estimated at $20.23 million, with a per-share value of $0.15, indicating limited growth potential [11]. Future Outlook - The path to compound capital at high rates of return remains unclear, suggesting that incremental investments may not yield significant market value [10][14]. - The company is expected to maintain a steady state of operations with projected revenues of approximately $3.5 billion in FY'24, but growth rates are modest [16].

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2024 OR o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission file number: 001-38399 AdaptHealth Corp. (Exact name of registrant as specified in its charter) Delaware 82-3677704 (State of Other Jurisdiction of incorporation or Organization) (I.R.S. Emp ...

Financial Data and Key Metrics - Net revenue for Q2 2024 was $806 million, a 1.6% increase compared to Q2 2023 [18] - Sleep revenue reached $322.4 million, up 6.5% year-over-year, with new starts increasing over 5% sequentially from Q1 [18] - Diabetes revenue was $151.2 million, down $17.7 million year-over-year, primarily due to tough comparables from 2023 [19] - Adjusted EBITDA for Q2 2024 was $165.3 million, reflecting a margin of 20.5%, slightly improved from Q1 [22] - Free cash flow for Q2 was $116.7 million, outperforming the target of $94 million [23] Business Line Performance - Sleep business saw strong resupply demand, with the resupply census reaching over 1.6 million patients [18] - Diabetes revenue faced challenges due to timing of system conversions in 2023, but the company expects a pickup in the second half of 2024 [19] - Respiratory revenue grew 3.3% year-over-year, driven by onboarding Humana patients and strong utilization [21] Market Performance - The company is focusing on three core markets: sleep, respiratory, and diabetes, with efforts to align sales forces and improve operational efficiency [11] - The company recently signed an agreement to sell non-core custom rehab technology assets, which represented about 1% of enterprise revenue [22] Strategic Direction and Industry Competition - The company is investing in talent, process improvement, and technology adoption to drive organic growth and simplify operations [9][10] - A new leadership role, Executive Vice President of Strategy and Healthcare Innovation, was created to focus on long-term sustainable growth and clinical relevance [12] - The company is exploring AI and automation to improve operational efficiency and patient experiences [14][15] Management Commentary on Operating Environment and Future Outlook - Management expressed optimism about the road ahead, emphasizing the importance of simplifying operations and delivering growth [16] - The company expects Q3 revenue to be flat sequentially, with adjusted EBITDA margin slightly down due to recent investments in people and technology [24] - Full-year guidance was updated, with net revenue expected to be in the range of $3.255 billion to $3.315 billion, and adjusted EBITDA between $660 million and $700 million [24] Other Important Information - The company is paying down debt, with a net leverage ratio now just under 3x, ahead of the goal to be under 3x by the end of 2024 [23] - The company is conducting low-cost AI experiments, which are showing promising results in customer and clinical documentation [14][15] Q&A Session Summary Question: Non-core assets and their potential impact - Non-core assets are those that do not support the company's focus on sleep, respiratory, and diabetes markets, and the company is evaluating their disposition [27][28] Question: Diabetes business trajectory and CGM performance - The company expects a pickup in pump and CGM revenue in the second half of 2024, driven by recent CGM compatibility launches [31][32] Question: Sleep business supply constraints - Supply constraints for sleep resupply products improved during Q2, and the company does not expect further issues for the rest of the year [43][44] Question: Investments and their impact on EBITDA guidance - The company made key investments in people and technology, which will impact Q3 EBITDA margin, but cost-out initiatives are expected to offset these in Q4 [51][52] Question: Diabetes revenue through pharmacy channels - Approximately 5% of diabetes revenue is going through pharmacy channels, with expectations for growth as the company expands its pharmacy distribution capabilities [54] Question: Respiratory revenue growth and capitated contracts - Respiratory revenue growth is driven by the Humana contract and market share gains, with the company maintaining a pipeline of incremental capitated deals [63][65] Question: Pharmacy channel infrastructure for diabetes products - The company is building infrastructure to support pharmacy distribution, with recent examples including Louisiana Medicaid [70][72]

AdaptHealth Corp. (AHCO) came out with quarterly earnings of $0.21 per share, beating the Zacks Consensus Estimate of $0.19 per share. This compares to earnings of $0.16 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 10.53%. A quarter ago, it was expected that this company would post earnings of $0.06 per share when it actually produced earnings of $0.02, delivering a surprise of -66.67%.Over the last four quarters, the compa ...

Exhibit 99.1 FOR IMMEDIATE RELEASE ADAPTHEALTH CORP. ANNOUNCES SECOND QUARTER 2024 RESULTS PLYMOUTH MEETING, Pa. – August 6, 2024 - AdaptHealth Corp. (NASDAQ: AHCO) ("AdaptHealth" or the "Company"), a national leader in providing patient-centered, healthcare-at-home solutions including home medical equipment, medical supplies, and related services, announced today financial results for the second quarter ended June 30, 2024. Second Quarter Results and Highlights All comparisons are to the quarter ended June ...

Investors interested in stocks from the Medical - Products sector have probably already heard of AdaptHealth Corp. (AHCO) and Prestige Consumer Healthcare (PBH) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out.There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The Zacks Rank favors ...