Group 1: Earnings Performance - Option Care reported quarterly earnings of $0.41 per share, exceeding the Zacks Consensus Estimate of $0.31 per share, and up from $0.31 per share a year ago, representing an earnings surprise of 32.26% [1] - The company posted revenues of $1.28 billion for the quarter ended September 2024, surpassing the Zacks Consensus Estimate by 4.69%, compared to year-ago revenues of $1.09 billion [2] - Over the last four quarters, Option Care has consistently surpassed consensus EPS estimates [2] Group 2: Stock Performance and Outlook - Option Care shares have declined approximately 9.5% since the beginning of the year, while the S&P 500 has gained 22.3% [3] - The current consensus EPS estimate for the upcoming quarter is $0.35 on revenues of $1.25 billion, and for the current fiscal year, it is $1.22 on revenues of $4.84 billion [7] - The estimate revisions trend for Option Care is currently unfavorable, resulting in a Zacks Rank 4 (Sell) for the stock, indicating expected underperformance in the near future [6] Group 3: Industry Context - The Medical - Outpatient and Home Healthcare industry, to which Option Care belongs, is currently ranked in the top 12% of over 250 Zacks industries, suggesting a favorable industry outlook [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Core Insights - Option Care Health reported a net revenue of $1,278.5 million for Q3 2024, representing a 17.0% increase from $1,093.0 million in Q3 2023 [2] - The gross profit for the quarter was $256.7 million, accounting for 20.1% of net revenue, which is a slight increase from $254.3 million (23.3% of net revenue) in the same quarter last year [2] - Net income decreased by 4.3% to $53.9 million, maintaining a diluted earnings per share of $0.31, unchanged from Q3 2023 [2] - Adjusted net income was $70.7 million, or $0.41 adjusted diluted earnings per share, down 3.2% from $73.1 million ($0.40) in Q3 2023 [2] - Adjusted EBITDA rose by 5.3% to $115.6 million compared to $109.8 million in Q3 2023 [2] - Cash flow from operations significantly increased to $160.4 million from $61.0 million in Q3 2023 [2] - The company ended Q3 2024 with cash and cash equivalents of $483.0 million [2] Supply Chain Challenges - Option Care Health faced supply chain disruptions due to Hurricane Helene, affecting the production of intravenous solution bags, which impacts the ability to support existing and new patients [2] - The company is closely monitoring the situation and collaborating with manufacturers to secure inventory, but expects negative impacts on Q4 financial results [2] Updated Financial Guidance - For the full year 2024, Option Care Health anticipates net revenue between $4.9 billion and $4.95 billion [3] - Adjusted EBITDA is expected to be in the range of $438 million to $443 million [3] - The company maintains a cash flow from operations guidance of at least $300 million [3] - The effective tax rate is projected to be between 26% and 28%, consistent with previous guidance [3] - Net interest expense is expected to be approximately $55 million to $60 million, also consistent with prior guidance [3] Company Overview - Option Care Health is the largest independent provider of home and alternate site infusion services in the U.S., employing over 7,500 team members, including more than 4,500 clinicians [4] - The company aims to elevate care standards for patients with acute and chronic conditions across all 50 states [4]

Financial Performance - Net revenue for Q3 2024 was $1,278.5 million, a 17.0% increase from $1,093.0 million in Q3 2023[2] - Gross profit for Q3 2024 was $256.7 million, representing 20.1% of net revenue, compared to $254.3 million or 23.3% of net revenue in Q3 2023[2] - Net income for Q3 2024 was $53.9 million, down 4.3% from $56.3 million in Q3 2023, with diluted earnings per share remaining at $0.31[2] - Adjusted net income for Q3 2024 was $70.7 million, a decrease of 3.2% from $73.1 million in Q3 2023[2] - Adjusted EBITDA for Q3 2024 was $115.6 million, up 5.3% from $109.8 million in Q3 2023[2] - Net income for the nine months ended September 30, 2024, was $151,690,000, a decrease of 27.8% compared to $209,913,000 for the same period in 2023[14] - EBITDA for the nine months ended September 30, 2024, was $286,729,000, down 21.4% from $365,056,000 in the prior year[15] - Adjusted net income for the nine months ended September 30, 2024, was $197,329,000, an increase of 3.7% compared to $190,621,000 for the same period in 2023[15] - The company’s diluted earnings per share for the nine months ended September 30, 2024, was $0.87, down from $1.16 in the same period of 2023[15] - The company’s adjusted earnings per share for the nine months ended September 30, 2024, was $1.14, compared to $1.05 for the same period in 2023, reflecting an increase of 8.6%[15] Cash Flow and Liquidity - Cash flow from operations for Q3 2024 was $160.4 million, significantly higher than $61.0 million in Q3 2023[2] - Cash and cash equivalents at the end of Q3 2024 were $483.0 million, an increase from $343.8 million at the end of 2023[10] - Net cash provided by operating activities for the nine months ended September 30, 2024, was $287,270,000, compared to $320,326,000 in the same period of 2023, reflecting a decrease of 10.3%[14] - Cash and cash equivalents at the end of the period increased to $483,026,000 from $386,489,000, representing a growth of 25.0% year-over-year[14] Investment and Stock Activity - The company repurchased approximately $41.9 million of stock in Q3 2024[2] - The company reported a net cash used in investing activities of $25,266,000 for the nine months ended September 30, 2024, a decrease from $40,725,000 in the prior year[14] Operational Challenges - Supply chain disruptions related to intravenous solution bags are anticipated to negatively impact Q4 2024 financial results[2] - The company experienced a significant increase in accounts payable, which rose to $164,754,000 from $50,726,000, indicating a change in working capital dynamics[14] - The company’s interest expense for the nine months ended September 30, 2024, was $38,150,000, slightly down from $38,816,000 in the previous year[15] Future Outlook - The company expects full year 2024 net revenue to be between $4.9 billion and $4.95 billion[3]

Company Overview - Option Care Health Inc. is the nation's largest independent provider of home and alternate site infusion services, employing over 7,500 team members, including more than 4,500 clinicians [3] Upcoming Financial Results - The company will release its third quarter results for the period ended September 30, 2024, on October 30, 2024, before the market opens [1] - A conference call to review the results will be hosted by the management team at 8:30 a.m. E.T. on the same day [1] Conference Call Details - Participants can pre-register for the conference call via a provided link and access it through a live audio webcast [2] - A replay of the call will be available shortly after its completion and will remain accessible for approximately 90 days [2]

Investors interested in stocks from the Medical - Outpatient and Home Healthcare sector have probably already heard of Option Care (OPCH) and Astrana Health, Inc. (ASTH) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look. The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The proven Zacks Rank puts an emphasis on earnings estimates and es ...

Core Viewpoint - Option Care (OPCH) shares have increased by 10.1% in the past four weeks, closing at $29.69, with a mean price target of $39.13 indicating a potential upside of 31.8% according to Wall Street analysts [1] Price Targets and Analyst Consensus - The mean estimate consists of eight short-term price targets with a standard deviation of $2.64, where the lowest estimate of $36 suggests a 21.3% increase, and the highest estimate of $43 indicates a 44.8% surge [2] - A low standard deviation signifies strong agreement among analysts regarding the stock's price movement, which can serve as a starting point for further research [7] Earnings Estimates and Potential Upside - Analysts show strong agreement in revising earnings per share (EPS) estimates higher, which correlates with potential stock price increases [9] - Over the last 30 days, one estimate has increased, leading to a 0.7% rise in the Zacks Consensus Estimate for the current year [10] Zacks Rank and Investment Implications - OPCH holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimates, indicating a strong potential upside [11]

While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies. Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional valuation metrics to find stocks that they ...

What's Next for Option Care? Ahead of this earnings release, the estimate revisions trend for Option Care: mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. This company is expected to post quar ...

Core Insights - Option Care Health reported a net revenue of $1,227.2 million for Q2 2024, representing a 14.8% increase from $1,069.1 million in Q2 2023 [11] - The company experienced a net income of $53.0 million, or $0.30 diluted earnings per share, which is a 53.6% decrease compared to $114.4 million, or $0.63 diluted earnings per share, in the same quarter last year [11] - Adjusted EBITDA for Q2 2024 was $108.4 million, down 1.5% from $110.1 million in Q2 2023 [11] Financial Performance - Gross profit for Q2 2024 was $249.4 million, accounting for 20.3% of net revenue, slightly down from $250.8 million, or 23.5% of net revenue, in Q2 2023 [11] - Cash flow from operations increased to $195.7 million from $169.5 million in Q2 2023 [11] - The company repurchased approximately $78.1 million of stock during the quarter [11] Balance Sheet Highlights - Total assets as of June 30, 2024, were $3,348.6 million, up from $3,217.0 million at the end of 2023 [8] - Current assets increased to $1,227.4 million from $1,094.3 million at the end of 2023 [8] - Total liabilities rose to $1,937.2 million from $1,795.4 million at the end of 2023 [8] Guidance for Full Year 2024 - The company expects net revenue to be between $4.75 billion and $4.85 billion [23] - Adjusted EBITDA is projected to be between $435 million and $450 million [23] - Cash flow from operations is anticipated to be at least $300 million, consistent with previous guidance [23]

BANNOCKBURN, IL., July 31, 2024 - Option Care Health, Inc. (the "Company" or "Option Care Health") (Nasdaq: OPCH), the nation's largest independent provider of home and alternate site infusion services, announced today financial results for the second quarter ended June 30, 2024. Note that the second quarter of 2023 net income and cash flow from operations includes $62.8 million related to the termination payment received on behalf of Amedisys, net of merger-related expenses and taxes. Conference Call OPTIO ...