Investors interested in stocks from the Medical - Outpatient and Home Healthcare sector have probably already heard of Option Care (OPCH) and Chemed (CHE) . 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 puts an emphasis on ear ...

Have you been paying attention to shares of Option Care (OPCH) ? Shares have been on the move with the stock up 10.7% over the past month. The stock hit a new 52-week high of $34.57 in the previous session. Option Care has gained 46.4% since the start of the year compared to the 6.7% move for the Zacks Medical sector and the 4.2% return for the Zacks Medical - Outpatient and Home Healthcare industry.What's Driving the Outperformance?The stock has a great record of positive earnings surprises, as it hasn't m ...

Group 1 - Option Care Health, Inc. (OPCH) has reached an important support level and is considered a good stock pick from a technical perspective due to a recent "golden cross" event [1] - A golden cross is a bullish technical chart pattern formed when a stock's short-term moving average, typically the 50-day, crosses above its longer-term moving average, usually the 200-day [2] - The golden cross pattern consists of three stages: a downtrend followed by a bottom, the crossover of moving averages indicating a trend reversal, and an upward price movement [3] Group 2 - OPCH has moved 5.7% higher over the last four weeks, indicating potential for a breakout [4] - The company is currently rated 2 (Buy) on the Zacks Rank, suggesting positive market sentiment [4] - Earnings expectations for OPCH have improved, with three upward revisions and no downward changes in the last 60 days, leading to an increase in the Zacks Consensus Estimate [4][5]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-K (Mark One) Commission file number: 001-11993 OPTION CARE HEALTH, INC. (Exact name of registrant as specified in its charter) Delaware 05-0489664 Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes ☑ No ☐ (State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.) 3000 Lakeside Dr. Suite 300N, Bannockburn, IL 60015 (A ...

Financial Data and Key Metrics Changes - Revenue growth for Q4 2024 was reported at 19.7% compared to Q4 2023, driven by balanced performance across the portfolio [18][19] - Gross profit increased by 8.6% year-over-year, reflecting strong top-line growth [19] - Adjusted EBITDA for Q4 was $121.6 million, growing almost 9% year-over-year, while adjusted earnings per share reached $0.44, representing a 15.8% increase [21] - Full-year cash flow generation was $323 million, with $250 million allocated to share repurchases [22] Business Line Data and Key Metrics Changes - The acute therapy segment experienced high single-digit growth, despite earlier supply chain disruptions [19] - The company reported significant contributions from its rare and orphan therapies, which are part of its limited distribution portfolio [18][19] - The advanced practitioner model was highlighted as a key area for growth, with 15 sites currently operational and plans for expansion [12][100] Market Data and Key Metrics Changes - The company noted improvements in IV solution supply dynamics, which had previously constrained patient onboarding [8][28] - The competitive landscape has shifted, with some larger competitors exiting the market, allowing the company to capture additional market demand [30][31] Company Strategy and Development Direction - The company aims to continue investing in its national integrated network of compounding pharmacies and infusion suites to enhance local responsiveness [9][16] - The acquisition of Intramed Plus is expected to expand the company's footprint and enhance its advanced practitioner model [11][12] - The focus remains on delivering value to referral sources and driving top-line growth despite challenges from specific therapy dynamics [15][16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating the challenges posed by the Stelara dynamics, estimating a gross profit impact of $60 million to $70 million for 2025 [15][24] - The company anticipates continued earnings growth in 2025, supported by a balanced portfolio and strategic investments [15][16] - Management emphasized the importance of maintaining high-quality care and operational efficiency in a competitive environment [30][31] Other Important Information - The company has exhausted its prior share repurchase authorization, repurchasing $90 million in Q4, and has a new $500 million authorization approved by the Board [13][14] - The company is committed to enhancing its infusion suite network and expanding clinical capabilities to provide comprehensive care solutions [12][100] Q&A Session Summary Question: Acute therapy growth and competition - Management noted improved supply chain dynamics and a strong position to onboard new patients, despite competitive shifts in the market [28][30] Question: Adjusted EPS and long-term growth algorithm - Management indicated that adjusted EPS growth is expected to outpace adjusted EBITDA growth due to share repurchase efforts and M&A activities [35][36] Question: Q1 seasonality and guidance - Management acknowledged typical early Q1 disruptions but expressed confidence in stable revenue from chronic therapies [42][43] Question: Impact of Stelara and patient support - Management confirmed ongoing support for complex Stelara patients while reallocating resources to growth initiatives [46][47] Question: Intramed acquisition and margins - Management expressed optimism about improving Intramed's margins through integration and leveraging existing capabilities [52][54] Question: M&A strategy and market opportunities - Management stated that they are not capital constrained and are actively pursuing M&A opportunities that align with their strategic goals [58][61] Question: Biosimilars impact on guidance - Management indicated that the current year would not see a material impact from biosimilars on guidance [70] Question: Labor costs and recruitment - Management reported a strong position in recruiting and retaining talent, with effective strategies in place to manage labor costs [72][74] Question: Payer negotiations and Medicare Advantage - Management highlighted constructive relationships with payers and the value they provide in managing total cost of care [105][109] Question: SG&A growth and operational investments - Management discussed investments in operational infrastructure to support market opportunities, with SG&A as a percentage of revenue continuing to decline [111][113] Question: VYJUVEK product traction - Management noted that while VYJUVEK is a clinical success, its gross margin profile remains mid-single-digit due to high therapy costs [116]

Financial Data and Key Metrics Changes - Revenue growth for Q4 2024 was reported at 19.7% compared to Q4 2023, driven by balanced performance across the portfolio, particularly from rare and orphan therapies [14][17] - Gross profit increased by 8.6% year-over-year, with adjusted EBITDA for Q4 reaching $121.6 million, reflecting a growth of almost 9% [16][17] - Adjusted earnings per share for Q4 was $0.44, representing a 15.8% increase year-over-year, while full-year adjusted earnings per share was $1.58, showing over 10% growth [17][18] Business Line Data and Key Metrics Changes - The acute therapy segment experienced high single-digit growth despite earlier supply chain disruptions, with significant improvements noted throughout the quarter [15][20] - The company reported a notable contribution from its rare and orphan therapies, which are part of its limited distribution portfolio [7][14] Market Data and Key Metrics Changes - The company has established a footprint of over 175 infusion locations, including 15 sites with advanced practitioner capabilities, enhancing its service offerings [11][70] - The competitive landscape has shifted, with some larger competitors exiting the market, allowing the company to capture additional market demand [20][22] Company Strategy and Development Direction - The company aims to continue investing in its national integrated network of compounding pharmacies and infusion suites to ensure high-quality care [9][12] - The acquisition of IntraMed Plus is expected to enhance the company's capabilities and expand its market presence, particularly in the Southeastern United States [10][46] - The focus remains on deploying capital through both accretive acquisitions and share repurchases to create long-term shareholder value [12][26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating the challenges posed by the supply chain and the impact of therapy portfolio dynamics, particularly regarding Stelara [12][13] - The company anticipates continued earnings growth in 2025 despite a projected gross profit reset due to less favorable economics for Stelara [12][19] Other Important Information - The company has opened two new state-of-the-art compounding pharmacies in New York City and Tampa to enhance local responsiveness and capacity [9][66] - The company exhausted its prior share repurchase authorization, repurchasing $90 million in shares during the quarter, and has approved a new $500 million authorization [11][12] Q&A Session Summary Question: Acute therapy growth and competition - Management noted improvements in supply chain dynamics and expressed confidence in capturing market demand despite competitive shifts [20][21] Question: Adjusted EPS growth and long-term algorithm - Management indicated that adjusted EPS growth is expected to outpace adjusted EBITDA growth due to share repurchase efforts and capital deployment strategies [24][26] Question: Q1 seasonality and guidance - Management acknowledged typical early Q1 disruptions but indicated a stable revenue base due to a higher proportion of chronic therapies [34][35] Question: STELARA impact and patient support - Management confirmed ongoing support for complex STELARA patients while reallocating resources to maintain growth initiatives [36][37] Question: IntraMed acquisition and margins - Management expressed optimism about improving IntraMed's margins through integration and leveraging existing capabilities [44][45] Question: M&A strategy and market conditions - Management stated that they are not capital constrained and are actively pursuing M&A opportunities that provide strategic value [48][50] Question: Labor costs and recruitment - Management reported a strong position in recruiting and retaining talent, with effective strategies in place to manage labor costs [58][59] Question: Payer negotiations and Medicare Advantage - Management highlighted constructive relationships with payers and emphasized the value provided in managing total cost of care [86][87]

Core Insights - Option Care (OPCH) reported quarterly earnings of $0.35 per share, exceeding the Zacks Consensus Estimate of $0.33 per share, and showing an increase from $0.32 per share a year ago, resulting in an earnings surprise of 6.06% [1] - The company achieved revenues of $1.35 billion for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 1.56% and up from $1.12 billion year-over-year [2] - Option Care's stock has increased approximately 40.7% since the beginning of the year, significantly outperforming the S&P 500's gain of 1.3% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.25 on revenues of $1.23 billion, while for the current fiscal year, the estimate is $1.26 on revenues of $5.35 billion [7] - The estimate revisions trend for Option Care is mixed, leading to a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6] Industry Context - The Medical - Outpatient and Home Healthcare industry, to which Option Care belongs, is currently ranked in the top 24% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [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 Viewpoint - Option Care Health, Inc. reported solid financial results for the fourth quarter and full year 2024, demonstrating resilience in a challenging environment while focusing on patient-centered care [4]. Fourth Quarter 2024 Financial Highlights - Net revenue reached $1,346.4 million, a 19.7% increase from $1,124.4 million in Q4 2023 [6]. - Gross profit was $268.4 million, representing 19.9% of net revenue, up 8.6% from $247.1 million (22.0% of net revenue) in Q4 2023 [6]. - Net income was $60.1 million, compared to $57.2 million in Q4 2023, with diluted earnings per share of $0.35, a 9.4% increase from $0.32 [6]. - Adjusted net income was $75.5 million, up from $66.7 million in Q4 2023, with adjusted diluted earnings per share of $0.44, a 15.8% increase from $0.38 [6]. - Adjusted EBITDA was $121.6 million, an 8.9% increase from $111.6 million in Q4 2023 [6]. - Cash flow from operations was $36.1 million, down 29.1% from $51.0 million in Q4 2023 [6]. - Approximately $90.0 million of stock was repurchased in Q4 2024 [6]. Full Year 2024 Financial Highlights - Total net revenue for the year was $4,998.2 million, a 16.2% increase from $4,302.3 million in 2023 [6]. - Gross profit for the year was $1,013.0 million, or 20.3% of revenue, up 3.2% from $981.2 million (22.8% of revenue) in 2023 [6]. - Net income for the year was $211.8 million, down from $267.1 million in 2023, with diluted earnings per share of $1.23, a 16.9% decrease from $1.48 [6]. - Adjusted net income was $272.8 million, compared to $257.7 million in 2023, with adjusted diluted earnings per share of $1.58, a 10.5% increase from $1.43 [6]. - Adjusted EBITDA for the year was $443.8 million, up 4.4% from $425.2 million in 2023 [6]. - Cash flow from operations totaled $323.4 million, down 12.9% from $371.3 million in 2023 [6]. Full Year 2025 Financial Guidance - Expected net revenue is projected to be between $5.3 billion and $5.5 billion [7]. - Adjusted diluted earnings per share is anticipated to be between $1.59 and $1.69 [7]. - Adjusted EBITDA is expected to range from $450 million to $470 million [7]. - Cash flow from operations is projected to be at least $320 million [7]. - Effective tax rate is estimated to be between 25% and 27% [7]. - Net interest expense is expected to be approximately $55 million to $60 million [7]. Company Overview - Option Care Health is the largest independent provider of home and alternate site infusion services in the U.S., employing over 8,000 team members, including more than 5,000 clinicians [8].

Revenue Projections - For Q4 2024, Option Care Health expects net revenue of approximately $1.34 billion to $1.35 billion, representing a growth of approximately 19.2% to 20.1% over Q4 2023[4] - For the full year 2024, net revenue is expected to be approximately $4.99 billion to $5.00 billion, indicating a growth of approximately 16.0% to 16.2% compared to the prior year[4] - For full year 2025, Option Care Health expects net revenue of $5.2 billion to $5.4 billion, with adjusted EBITDA of $445 million to $465 million[11] EBITDA and Income Projections - Adjusted EBITDA for Q4 2024 is projected to be approximately $118.7 million to $121.7 million, reflecting a 6.4% to 9.1% increase over Q4 2023[4] - Adjusted net income for full year 2024 is projected to be approximately $268.3 million to $274.1 million, with adjusted diluted earnings per share of $1.55 to $1.59[4] Cash Flow and Financial Guidance - The company anticipates cash flow from operations of at least $300 million for the full year 2024[4] - The company will provide further financial guidance for 2025 during its Q4 earnings call scheduled for February 26, 2025[8] Stock Repurchase Program - The company has authorized a new $500 million stock repurchase program, following the completion of a previous $90 million program[6] Impact of Pricing Adjustments - A negative gross profit impact of approximately $60 million to $70 million is expected for 2025 due to Stelara pricing adjustments[5] Upcoming Events - Option Care Health will participate in the 43rd Annual J.P. Morgan Healthcare Conference on January 13, 2025[7]

Core Viewpoint - Option Care Health, Inc. announced preliminary unaudited financial results for Q4 and full year 2024, highlighting significant revenue growth and a new share repurchase program [1][4][5]. Financial Results Summary - For Q4 2024, the company expects net revenue between $1.34 billion and $1.35 billion, reflecting a growth of approximately 19.2% to 20.1% compared to Q4 2023 [8]. - Net income for Q4 2024 is projected to be between $56.8 million and $60.9 million, translating to diluted earnings per share of $0.33 to $0.36 [8]. - Adjusted net income for Q4 2024 is anticipated to be between $71.0 million and $76.8 million, with adjusted diluted earnings per share ranging from $0.42 to $0.45 [8]. - Adjusted EBITDA for Q4 2024 is expected to be between $118.7 million and $121.7 million, indicating a 6.4% to 9.1% increase over Q4 2023 [8]. Full Year 2024 Results - For the full year 2024, net revenue is expected to be approximately $4.99 billion to $5.00 billion, representing a growth of about 16.0% to 16.2% year-over-year [8]. - Net income for the full year is projected to be between $208.5 million and $212.6 million, with diluted earnings per share of $1.21 to $1.23 [8]. - Adjusted net income for the full year is anticipated to be between $268.3 million and $274.1 million, with adjusted diluted earnings per share ranging from $1.55 to $1.59 [8]. - Adjusted EBITDA for the full year is expected to be between $441.0 million and $444.0 million, reflecting a 3.7% to 4.4% increase compared to the previous year [8]. 2025 Guidance - For full year 2025, the company anticipates a negative gross profit impact of approximately $60 million to $70 million due to pricing adjustments related to Stelara [4]. - Further details regarding 2025 financial guidance will be provided during the fourth quarter earnings call in February [4]. Share Repurchase Program - In Q4 2024, the company completed $90 million of share repurchases under its previous program and has authorized a new $500 million stock repurchase program with no specified expiration date [5]. Upcoming Events - The company will present at the 43rd Annual J.P. Morgan Healthcare Conference on January 13, 2025, and will release full Q4 and full year results on February 26, 2025 [6][7].