We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Change Healthcare Inc. reported first-quarter fiscal 2022 adjusted earnings per share (EPS) of 41 cents, which missed the Zacks Consensus Estimate of 46 cents by 10.9%. Nonetheless, the bottom line improved 64% on a year-over-year basis.
Net loss per share was 1 cent in the quarter, much narrower that the year-ago quarter’s loss of 18 cents.
Revenue Details
Revenues climbed 25% from the prior-year period to $867.9 million in the reported quarter. The top line outpaced the Zacks Consensus Estimate by 2.3%.
Segmental Analysis
Change Healthcare operates through three segments — Software and Analytics, Network Solutions, Technology-Enabled Services and Postage and Eliminations.
Software and Analytics
Revenues at this segment totaled $420.3 million, up 7.3% on a year-over-year basis.
Network Solutions
Revenues at this segment were $209.5 million, up 46.7% year over year.
McKesson Corporation Price, Consensus and EPS Surprise
Revenues at this segment amounted to $225.5 million, up 20.1% year over year.
Postage and Eliminations
Revenues at this segment totaled $17 million, down 37.1% year over year.
Margin Analysis
Total operating expenses were $823.7 million, up 17.4% from the prior-year quarter.
In the quarter under review, Change Healthcare reported operating income of $44.1 million, against the year-ago quarter’s operating loss of $7.7 million.
Financial Position
The company exited the quarter with cash and cash equivalents of $109.1 million, compared with $113.1 million in the preceding quarter.
Cash provided operating activities at the end of fiscal first quarter amounted to $110.1 million compared with $169.1 million in the year-ago period.
Guidance
Given the proposed merger agreement (with OptumInsight), Change Healthcare will not be issuing financial guidance going forward.
Wrapping Up
Change Healthcare exited first-quarter fiscal 2022 on a mixed note, wherein earnings missed the Zacks Consensus Estimate but revenues beat the same. The company exhibited robust performance across Software and Analytics, Network Solutions and Technology-Enabled segments in the quarter under review.
However, cut-throat competition remains a concern. Weak performance at the Postage and Eliminations segment is a woe. Higher operating expenses is concerning.
Zacks Rank
Currently, Change Healthcare carries a Zacks Rank #2 (Buy).
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 Encompass Health Corporation (EHC - Free Report) , West Pharmaceutical Services, Inc. (WST - Free Report) and Hill-Rom Holdings, Inc. . While Encompass Health sports a Zacks Rank #1 (Strong Buy), both West Pharmaceutical and Hill-Rom carry a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Encompass Health reported second-quarter 2021 adjusted EPS of $1.17, which beat the Zacks Consensus Estimate by 15.8%. Second-quarter revenues of $1.3 billion outpaced the consensus mark by 1.5%.
West Pharmaceutical reported second-quarter 2021 adjusted EPS of $2.46, which surpassed the Zacks Consensus Estimate by 41.4%. Second-quarter revenues of $723.6 million outpaced the Zacks Consensus Estimate by 8.7%.
Hill-Rom reported third-quarter fiscal 2021 adjusted EPS of $1.38, which beat the Zacks Consensus Estimate by 2.9%. Fiscal third-quarter revenues of $717.7 million outpaced the consensus mark by 1.6%.
Zacks' 7 Best Strong Buy Stocks (New Research Report)
Valued at $99, click below to receive our just-released report predicting the 7 stocks that will soar highest in the coming month.
Image: Bigstock
Change Healthcare (CHNG) Q1 Earnings Miss, Revenues Beat
Change Healthcare Inc. reported first-quarter fiscal 2022 adjusted earnings per share (EPS) of 41 cents, which missed the Zacks Consensus Estimate of 46 cents by 10.9%. Nonetheless, the bottom line improved 64% on a year-over-year basis.
Net loss per share was 1 cent in the quarter, much narrower that the year-ago quarter’s loss of 18 cents.
Revenue Details
Revenues climbed 25% from the prior-year period to $867.9 million in the reported quarter. The top line outpaced the Zacks Consensus Estimate by 2.3%.
Segmental Analysis
Change Healthcare operates through three segments — Software and Analytics, Network Solutions, Technology-Enabled Services and Postage and Eliminations.
Software and Analytics
Revenues at this segment totaled $420.3 million, up 7.3% on a year-over-year basis.
Network Solutions
Revenues at this segment were $209.5 million, up 46.7% year over year.
McKesson Corporation Price, Consensus and EPS Surprise
McKesson Corporation price-consensus-eps-surprise-chart | McKesson Corporation Quote
Technology-Enabled Services
Revenues at this segment amounted to $225.5 million, up 20.1% year over year.
Postage and Eliminations
Revenues at this segment totaled $17 million, down 37.1% year over year.
Margin Analysis
Total operating expenses were $823.7 million, up 17.4% from the prior-year quarter.
In the quarter under review, Change Healthcare reported operating income of $44.1 million, against the year-ago quarter’s operating loss of $7.7 million.
Financial Position
The company exited the quarter with cash and cash equivalents of $109.1 million, compared with $113.1 million in the preceding quarter.
Cash provided operating activities at the end of fiscal first quarter amounted to $110.1 million compared with $169.1 million in the year-ago period.
Guidance
Given the proposed merger agreement (with OptumInsight), Change Healthcare will not be issuing financial guidance going forward.
Wrapping Up
Change Healthcare exited first-quarter fiscal 2022 on a mixed note, wherein earnings missed the Zacks Consensus Estimate but revenues beat the same. The company exhibited robust performance across Software and Analytics, Network Solutions and Technology-Enabled segments in the quarter under review.
However, cut-throat competition remains a concern. Weak performance at the Postage and Eliminations segment is a woe. Higher operating expenses is concerning.
Zacks Rank
Currently, Change Healthcare carries a Zacks Rank #2 (Buy).
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 Encompass Health Corporation (EHC - Free Report) , West Pharmaceutical Services, Inc. (WST - Free Report) and Hill-Rom Holdings, Inc. . While Encompass Health sports a Zacks Rank #1 (Strong Buy), both West Pharmaceutical and Hill-Rom carry a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Encompass Health reported second-quarter 2021 adjusted EPS of $1.17, which beat the Zacks Consensus Estimate by 15.8%. Second-quarter revenues of $1.3 billion outpaced the consensus mark by 1.5%.
West Pharmaceutical reported second-quarter 2021 adjusted EPS of $2.46, which surpassed the Zacks Consensus Estimate by 41.4%. Second-quarter revenues of $723.6 million outpaced the Zacks Consensus Estimate by 8.7%.
Hill-Rom reported third-quarter fiscal 2021 adjusted EPS of $1.38, which beat the Zacks Consensus Estimate by 2.9%. Fiscal third-quarter revenues of $717.7 million outpaced the consensus mark by 1.6%.