, /PRNewswire/ -- QuadMed, LLC, a Wisconsin-based health care experience company and a subsidiary of Quad/Graphics, Inc. (NYSE: QUAD) ("Quad"), has opened its newest health center in West Bend, expanding its Wisconsin network of health centers dedicated to supporting area employers and their employees. Other QuadMed Shared Health Center Network locations include West Allis, Sussex, Hartford and Lomira. "Employers in southeastern Wisconsin have found great value in partnering with QuadMed to provide their em ...

Labor Market Insights - Economists expected a rebound in September payrolls from August, but still significantly weaker than a year ago, with the unemployment rate anticipated to remain at 4.3% [4] - The current labor market is described as "stagnant," with a focus on the importance of employment data in a low growth environment [5] - Job postings data indicates that health care has been a primary driver of job creation, accounting for more than half of new jobs in recent months [6] Job Postings and Sector Performance - Despite headline job postings being above pre-pandemic levels, all but one sector have seen year-over-year declines, indicating a shift from the strong economy of 2022 to a reliance on residual strength [7] - The distribution of jobs across industries is crucial for understanding the nuances of the current economy [8] Company-Specific Developments - Apple removed the ICEBlock app from its App Store following pressure from the Trump administration, citing safety risks for federal agents [9][10] - USA Rare Earth stock experienced a significant increase, rising 23% on Thursday and an additional 7% in premarket trading, following comments from CEO Barbara Humpton about close communication with the Trump administration [10][11] - The CEO emphasized the collaborative nature of the rare earth supply chain, indicating that multiple players are needed to develop the marketplace [11]

Corporate Responses - American Airlines pilots who celebrated the assassination of Charlie Kirk were immediately grounded and removed from service, with calls for their termination due to glorifying political violence [3] - Delta Air Lines suspended several employees for social media posts that exceeded respectful debate, indicating that violations of their social media policy could lead to termination [3][8] - The University of Miami's health care system fired an employee for making unacceptable public commentary regarding Kirk's death [9] - Children's Healthcare of Atlanta terminated a worker for inappropriate comments about Kirk's killing, emphasizing that such rhetoric violates their social media policy [9] - Office Depot fired an employee for refusing to print flyers about Charlie Kirk, labeling the incident as unacceptable and insensitive [13][15] - Nasdaq terminated an employee for remarks that condoned or celebrated violence related to Kirk [17] Educational Institutions - Middle Tennessee State University fired an employee for making a derogatory comment about Kirk's fate, with the university stating the termination was effective immediately [4] - Idaho's West Ada School District also fired an employee for posting inappropriate content online, expressing shock and sadness over the incident [6] - A middle school science teacher in Oregon was placed on leave and subsequently resigned after stating that Kirk's death "brightened up" his day [6] - Clemson University suspended an employee pending investigation for social media posts related to Kirk's death [7] Media and Public Figures - MSNBC analyst Matthew Dowd was fired for implying that Kirk's "awful words" led to "awful actions," with the network's president calling his remarks inappropriate and insensitive [10][12] - A coordinated effort appears to be behind the firings, with a doxxing site named "Expose Charlie's Murderers" collecting information on individuals who made posts about Kirk [22][23]

Financial Data and Key Metrics Changes - The company estimates a potential revenue impact of $50 million to $100 million due to the expiration of enhanced subsidies, primarily affecting the acute care division [5][4] - Same-store revenue growth is projected to be in the 5% to 7% range, with a midpoint of 6%, split evenly between price and volume [16][17] - The company experienced a $25 million EBITDA loss in Q2 due to delays in obtaining DEEM status for Cedar Hill Hospital, with an additional estimated loss of $25 million in the second half of the year [20][21] Business Line Data and Key Metrics Changes - The acute care division is expected to see a return to historically normative growth, while surgical volumes have been somewhat soft compared to previous years [16][17] - The behavioral health segment is experiencing labor shortages, impacting the ability to meet demand, but improvements in recruitment are anticipated [36][37] Market Data and Key Metrics Changes - Approximately 6% of adjusted acute admissions are exchange patients, which is lower than peers like Tenet and HCA, indicating geographical differences in patient demographics [9] - The company expects to capture more market share in behavioral care, particularly in outpatient settings, as care delivery becomes more fragmented [40][41] Company Strategy and Development Direction - The company is prepared to implement cost efficiencies and productivity improvements in response to potential revenue reductions from lost exchange volumes and Medicaid payments [10][12] - M&A activity is being considered, particularly for underperforming not-for-profit hospitals, but recent market conditions have made such opportunities less frequent [48][49] Management's Comments on Operating Environment and Future Outlook - Management describes the current operating environment as the first clean post-COVID year, with expectations for sustainable growth rates [16][17] - Labor pressures have eased, with wage inflation stabilizing at more normative levels, although challenges remain in hiring for behavioral health facilities [25][36] Other Important Information - The company is leveraging technology, including AI, to improve efficiency in revenue cycle management and clinical operations [32][33] - Approval for three Medicaid supplemental payment programs could add $150 million to $200 million in annual benefits if approved [14] Q&A Session Summary Question: Impact of enhanced subsidies expiration - Management provided estimates of $50 million to $100 million in potential revenue loss, primarily in the acute care division [5][4] Question: Volume trends and payer types - Management indicated that surgical volumes have been soft but expect a return to normative levels as the year progresses [16][17] Question: Cedar Hill Hospital's financial progression - Cedar Hill Hospital is expected to reach divisional margins within 24 months of opening, pending DEEM status approval [22][23] Question: Labor market conditions - Labor pressures have stabilized, with wage inflation returning to more normative levels, although some challenges remain in hiring [25][36] Question: Outlook for behavioral rates - Management anticipates a sustainable growth model for the behavioral business with same-store revenue growth targets in the 6% to 8% range [45][46] Question: M&A outlook - The company remains open to M&A opportunities, particularly for underperforming hospitals, but recent market conditions have limited such transactions [48][49]

Financial Performance & Guidance - CVS Health reported consolidated revenue growth of 8.4% in the second quarter of 2025[6] - Adjusted EPS for Q2 2025 was $1.81[6, 7, 11] - The company raised its 2025 adjusted EPS guidance to a range of $6.30 to $6.40[6, 14] - Full year 2025 consolidated revenue is projected to be at least $391.5 billion[7, 13] - Full year 2025 adjusted operating income is expected to be between $13.77 billion and $13.94 billion[7, 13] - Cash flow from operations for full year 2025 is projected to be at least $7.5 billion[7, 13] Segment Performance - Health Care Benefits total revenues for Q2 2025 were $36.3 billion[18] - Health Care Benefits adjusted operating income increased by nearly 40% year over year in Q2 2025[19] - Health Services total revenues for Q2 2025 were $46.5 billion[21] - Health Services adjusted operating income decreased ~18% year over year in Q2 2025[22] - Pharmacy & Consumer Wellness total revenues for Q2 2025 were $33.6 billion[24] - Pharmacy & Consumer Wellness adjusted operating income increased nearly 8% year over year in Q2 2025[25]

Core Insights - Zacks Premium provides various tools to enhance stock market investment confidence and knowledge [1][2] - The Zacks Style Scores serve as complementary indicators to the Zacks Rank, helping investors select stocks with high potential for market outperformance [3][8] Zacks Style Scores Overview - The Zacks Style Scores categorize stocks into four types: Value Score, Growth Score, Momentum Score, and VGM Score [4][5][6][7] - Each stock is rated from A to F based on its characteristics, with A indicating the highest potential for outperformance [4] Value Score - Focuses on identifying undervalued stocks using financial ratios such as P/E, PEG, and Price/Sales [4] Growth Score - Evaluates a company's financial health and future growth potential through earnings, sales, and cash flow analysis [5] Momentum Score - Targets stocks with upward or downward price trends, utilizing recent price changes and earnings estimate shifts [6] VGM Score - Combines Value, Growth, and Momentum Scores to provide a comprehensive assessment of stocks [7] Zacks Rank and Performance - The Zacks Rank is a proprietary model that uses earnings estimate revisions to identify winning stocks, with 1 (Strong Buy) stocks achieving an average annual return of +25.41% since 1988, significantly outperforming the S&P 500 [8][9] Stock Recommendation: McKesson Corporation - McKesson Corporation, a healthcare services and IT company, holds a Zacks Rank of 2 (Buy) and a VGM Score of A, indicating strong growth potential [13] - The company is projected to have a year-over-year earnings growth of 12.7% for the current fiscal year, supported by positive earnings estimate revisions [14]

Core Insights - The article emphasizes the importance of shareholder yield as a metric for long-term investors, combining dividend yield, share buybacks, and net debt reduction to assess how effectively a company returns capital to shareholders [2][4][5] Shareholder Yield Components - Dividends provide a steady income stream and signal management's confidence in financial health, contributing significantly to total equity returns, especially in sideways or bear markets [3] - Share buybacks reduce share count, enhancing per-share metrics like earnings and cash flow, which is particularly beneficial in low-growth environments [3] - Debt reduction improves balance sheet strength, reducing default risk and enhancing resilience during economic downturns, benefiting investors through improved financial positioning [4] Investment Opportunities - Companies with high shareholder yield, such as RITHM Capital Corp (RITM), Cognizant Technology Solutions (CTSH), Lam Research (LRCX), and McKesson (MCK), are highlighted as attractive options for income and capital appreciation [4][10][13][15][18] - RITM offers a competitive dividend yield of approximately 8.92%, with a history of increasing dividends and reducing long-term debt from $27.19 billion in 2020 to $18.6 billion in 2024 [8][10] - Cognizant has a dividend yield of 1.64%, with a payout ratio of 26% and a focus on reducing long-term debt from $663 million in 2020 to $567 million in 2024 [12][13] - Lam Research provides a dividend yield of around 1%, with a payout ratio of 25% and a reduction in long-term debt from $4.97 billion in 2020 to $3.73 billion in 2024 [14][15] - McKesson has a dividend yield of approximately 0.39%, with a payout ratio of 9% and a reduction in long-term debt from $14.47 billion in 2021 to $10.06 billion in 2024 [17][18] Performance and Rankings - RITM currently holds a Zacks Rank 1 (Strong Buy) and a Zacks Value Score of 'B', indicating strong upside potential [11] - Cognizant has a Zacks Rank 2 (Buy) and a Zacks Value Score of 'B', suggesting solid prospects [13] - Lam Research carries a Zacks Rank of 2 and a Zacks Value Score of 'C', indicating good potential [16] - McKesson has a Zacks Rank 2 and a Zacks Value Score of 'A', implying strong prospects for the stock [19]

Core Insights - Zacks Premium provides various tools to help investors make informed decisions and invest confidently in the stock market [1][2] Zacks Style Scores - Zacks Style Scores are indicators that assist investors in selecting stocks likely to outperform the market within 30 days, rated from A to F based on value, growth, and momentum characteristics [3] - The Value Score focuses on identifying undervalued stocks using financial ratios like P/E and Price/Sales [4] - The Growth Score emphasizes a company's financial health and future growth potential, analyzing projected and historical earnings and cash flow [5] - The Momentum Score helps investors capitalize on price trends by evaluating recent price changes and earnings estimate shifts [6] - The VGM Score combines all three Style Scores, providing a comprehensive assessment of stocks based on value, growth, and momentum [7] Zacks Rank - The Zacks Rank is a proprietary model that uses earnings estimate revisions to simplify portfolio building, with 1 (Strong Buy) stocks achieving an average annual return of +25.41% since 1988, significantly outperforming the S&P 500 [8][9] - Investors are encouraged to focus on stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B for optimal returns [11] Stock Highlight: McKesson Corporation - McKesson Corporation, a healthcare services and IT company, holds a Zacks Rank of 2 (Buy) and a VGM Score of A, making it a strong candidate for growth investors [13] - The company is projected to experience year-over-year earnings growth of 12.6% for the current fiscal year, supported by positive earnings estimate revisions from analysts [14]

Group 1 - CVS Health briefly took the top S&P 500 year-to-date performance spot away from Palantir in early May [1] - The Health Care Services industry company, once considered to be struggling, has shown signs of recovery since bottoming around the turn of the year [1]

Financial Data and Key Metrics Changes - For Q4 2024, total revenue was $702.8 million, flat compared to Q4 2023, while full year revenue reached $2.79 billion, a slight increase of just over 1% [61][63] - Adjusted EBITDA for Q4 was $40.4 million, totaling $161.1 million for the full year, reflecting a decrease of approximately 20% [11][62] - Consolidated net loss for Q4 was $23.5 million, while adjusted net income was $2.7 million, or $0.19 per share [63] Business Line Data and Key Metrics Changes - The NEMT segment, representing 70% of total revenue, generated $495 million in revenue, remaining flat year over year [64] - Personal Care Services (PCS) revenue increased by 3% year over year to $186.6 million, driven by a 3.5% growth in revenue per hour [68] - Remote Patient Monitoring (RPM) revenue was $19.2 million, representing 3% of total revenue but 16% of adjusted EBITDA [69] Market Data and Key Metrics Changes - Average monthly members in the NEMT segment decreased by approximately 11% year over year, while trip volume increased by 8.5% compared to a year ago [64] - The total addressable market for NEMT is estimated to exceed $6 billion, with an annual MCO revenue base of $1 billion entering 2025 [31] Company Strategy and Development Direction - The company aims to strengthen technology-enabled platforms across NEMT, personal care, and monitoring while executing strategic financial initiatives and divesting platforms [12][22] - A focus on monetizing select segments and unlocking value is emphasized, with a strategic alternatives committee established to oversee the divestiture process [22][23] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the unprecedented challenges faced in 2024, including Medicaid redetermination and increased healthcare utilization, but expressed confidence in navigating these disruptions [8][9] - The company is optimistic about future growth opportunities, particularly in the MCO segment, with a win rate exceeding 90% over the past two years [31] Other Important Information - The company secured an incremental $75 million term loan and $30 million in new second lien notes to enhance financial flexibility [14][60] - New board appointments were made to enhance expertise in operational efficiency and technology innovation [15][20] Q&A Session Summary Question: How does ModivCare Inc.'s exposure to Medicaid affect fee-for-service contracts? - Management expects that any Medicaid cuts will primarily affect healthier members, and they are currently negotiating to reset payments based on member mix [78][80] Question: Can you provide an update on the sale process? - Management indicated that discussions are ongoing and they are encouraged by the interest in their platforms, but specific timing for sales was not disclosed [83][84] Question: What is the current membership status in NEMT and monitoring? - Membership in NEMT has decreased significantly, with expectations of recovery as new contracts are pursued [89][90] Question: What are the expectations for cash flow in 2025? - Management confirmed that they expect a return to positive free cash flow in the latter half of 2025, with improvements in contract structures aiding liquidity [112][117] Question: How will the transition from shared risk to fee-for-service contracts impact revenue? - Approximately 25% of revenue is expected to shift to fee-for-service contracts, which will help stabilize cash flow and reduce working capital shifts [124][126]