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Change Healthcare (CHNG) Q4 Earnings & Revenues Top Estimates
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Change Healthcare Inc. reported fourth-quarter fiscal 2021 adjusted earnings per share (EPS) of 42 cents, which beat the Zacks Consensus Estimate of 37 cents by 13.5%. However, the bottom line remained flat on a year-over-year basis.
Revenue Details
Revenues rose 1.4% from the prior-year period to $855.2 million in the reported quarter. Further, the top line outpaced the Zacks Consensus Estimate by 1.7%.
Segmental Analysis
Change Healthcare operates through four segments — Software and Analytics, Network Solutions, Technology-Enabled Services and Postage and Eliminations.
Software and Analytics
Revenues at this segment totaled $416.3 million, down 0.6% on a year-over-year basis.
Network Solutions
Revenues at this segment were $198.3 million, up 30.3% year over year.
Change Healthcare Inc. Price, Consensus and EPS Surprise
Revenues at this segment amounted to $227.3 million, down 6.2% year over year.
Postage and Eliminations
Revenues at this segment totaled $23.4 million, down 22.3% year over year.
Margin Analysis
Total operating expenses were $813.5 million, down 8.8% from the prior-year quarter.
In the quarter under review, Change Healthcare reported operating income of $41.7 million, against the year-ago quarter’s operating loss of $48.5 million.
Financial Position
The company exited the quarter with cash and cash equivalents of $113.1 million, compared with $137.4 million in the preceding quarter.
Cumulative cash provided operating activities at the end of fourth-quarter fiscal 2021 amounted to $586.2 million compared with cash flow from operating activities of $593.3 million in the year-ago period.
Merger Update
On Jan 5, 2021, Change Healthcare and OptumInsight — a diversified health services company — which is also part of UnitedHealth Group, made an agreement to combine. Per the agreement, OptumInsight (through a wholly-owned subsidiary) will purchase all of the outstanding shares of Change Healthcare common stock for $25.75 per share in cash. The merger is anticipated to be completed in the second half of 2021.
Guidance
Given the recently proposed merger agreement, Change Healthcare will not be issuing financial guidance going forward.
Wrapping Up
Change Healthcare exited fourth-quarter fiscal 2021 on a strong note, wherein both earnings revenues beat the Zacks Consensus Estimate. The Network Solutions recorded solid performance in the quarter under review. Lower operating expenses is encouraging.
However, cut-throat competition remains a concern. Also, weak performance of the Software and Analytics, and Technology-Enabled Services segments is a woe.
Zacks Rank
Currently, Change Healthcare carries a Zacks Rank #3 (Hold).
Integer Holdings reported first-quarter 2021 adjusted EPS of 97 cents, which surpassed the Zacks Consensus Estimate by 12.8%. First-quarter revenues of $290.5 million outpaced the Zacks Consensus Estimate by 2.6%.
Illumina reported first-quarter 2021 adjusted EPS of $1.89, which surpassed the Zacks Consensus Estimate by 38.9%. First-quarter revenues of $1.09 billion outpaced the Zacks Consensus Estimate of $1.08 billion.
HCA Healthcare reported first-quarter 2021 adjusted EPS of $4.14, surpassing the Zacks Consensus Estimate by 23.6%. Net revenues of $14 billion exceeded the Zacks Consensus Estimate by 2.2%.
Zacks Names “Single Best Pick to Double”
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
You know this company from its past glory days, but few would expect that it’s poised for a monster turnaround. Fresh from a successful repositioning and flush with A-list celeb endorsements, it could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in a little more than 9 months and Nvidia which boomed +175.9% in one year.
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Change Healthcare (CHNG) Q4 Earnings & Revenues Top Estimates
Change Healthcare Inc. reported fourth-quarter fiscal 2021 adjusted earnings per share (EPS) of 42 cents, which beat the Zacks Consensus Estimate of 37 cents by 13.5%. However, the bottom line remained flat on a year-over-year basis.
Revenue Details
Revenues rose 1.4% from the prior-year period to $855.2 million in the reported quarter. Further, the top line outpaced the Zacks Consensus Estimate by 1.7%.
Segmental Analysis
Change Healthcare operates through four segments — Software and Analytics, Network Solutions, Technology-Enabled Services and Postage and Eliminations.
Software and Analytics
Revenues at this segment totaled $416.3 million, down 0.6% on a year-over-year basis.
Network Solutions
Revenues at this segment were $198.3 million, up 30.3% year over year.
Change Healthcare Inc. Price, Consensus and EPS Surprise
Change Healthcare Inc. price-consensus-eps-surprise-chart | Change Healthcare Inc. Quote
Technology-Enabled Services
Revenues at this segment amounted to $227.3 million, down 6.2% year over year.
Postage and Eliminations
Revenues at this segment totaled $23.4 million, down 22.3% year over year.
Margin Analysis
Total operating expenses were $813.5 million, down 8.8% from the prior-year quarter.
In the quarter under review, Change Healthcare reported operating income of $41.7 million, against the year-ago quarter’s operating loss of $48.5 million.
Financial Position
The company exited the quarter with cash and cash equivalents of $113.1 million, compared with $137.4 million in the preceding quarter.
Cumulative cash provided operating activities at the end of fourth-quarter fiscal 2021 amounted to $586.2 million compared with cash flow from operating activities of $593.3 million in the year-ago period.
Merger Update
On Jan 5, 2021, Change Healthcare and OptumInsight — a diversified health services company — which is also part of UnitedHealth Group, made an agreement to combine. Per the agreement, OptumInsight (through a wholly-owned subsidiary) will purchase all of the outstanding shares of Change Healthcare common stock for $25.75 per share in cash. The merger is anticipated to be completed in the second half of 2021.
Guidance
Given the recently proposed merger agreement, Change Healthcare will not be issuing financial guidance going forward.
Wrapping Up
Change Healthcare exited fourth-quarter fiscal 2021 on a strong note, wherein both earnings revenues beat the Zacks Consensus Estimate. The Network Solutions recorded solid performance in the quarter under review. Lower operating expenses is encouraging.
However, cut-throat competition remains a concern. Also, weak performance of the Software and Analytics, and Technology-Enabled Services segments is a woe.
Zacks Rank
Currently, Change Healthcare carries a Zacks Rank #3 (Hold).
Earnings of Other MedTech Majors at a Glance
Some better-ranked stocks in the broader medical space that have already announced their quarterly results are Integer Holdings Corporation (ITGR - Free Report) , Illumina, Inc. (ILMN - Free Report) and HCA Healthcare, Inc. (HCA - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Integer Holdings reported first-quarter 2021 adjusted EPS of 97 cents, which surpassed the Zacks Consensus Estimate by 12.8%. First-quarter revenues of $290.5 million outpaced the Zacks Consensus Estimate by 2.6%.
Illumina reported first-quarter 2021 adjusted EPS of $1.89, which surpassed the Zacks Consensus Estimate by 38.9%. First-quarter revenues of $1.09 billion outpaced the Zacks Consensus Estimate of $1.08 billion.
HCA Healthcare reported first-quarter 2021 adjusted EPS of $4.14, surpassing the Zacks Consensus Estimate by 23.6%. Net revenues of $14 billion exceeded the Zacks Consensus Estimate by 2.2%.
Zacks Names “Single Best Pick to Double”
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
You know this company from its past glory days, but few would expect that it’s poised for a monster turnaround. Fresh from a successful repositioning and flush with A-list celeb endorsements, it could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in a little more than 9 months and Nvidia which boomed +175.9% in one year.
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