It has been about a month since the last earnings report for LifePoint Health, Inc. . Shares have lost about 2.9% in that time frame.
Will the recent negative trend continue leading up to its next earnings release, or is LPNT due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
LifePoint Health Q4 Earnings Miss on Lower Revenues
LifePoint Health, Inc. reported earnings of 77 cents per share in fourth-quarter 2017 that missed the Zacks Consensus Estimate by 4.94%. Also, the figure declined 41.5% year over year.
Operational Update
Revenues of $1.49 billion missed the Zacks Consensus Estimate by 5.3% and fell roughly 5.2% year over year.
Provision for doubtful accounts was $282.4 million in the reported quarter, up 22.7% year over year.
Equivalent admissions declined 3% year over year to 172,791 and revenue per equivalent admission was down 4.2% year over year to $8625.
Total expenses of $1.55 billion increased 1.3% year over year.
At the end of the fourth quarter, the company had 71 hospitals compared with 72 hospitals in the year-ago quarter.
Financial Update
As of Dec 31, 2017, the company had total assets of $6.29 billion, down 0.5% year over year.
Cash and cash equivalents totaled $112 million, up 16.5% year over year.
As of Dec 31, 2017, long-term debt declined 0.5% to $2.88 billion from year-end 2016.
Net cash provided by operating activities totaled $178.2 million, up 73.9% year over year.
2018 Guidance
The company expects earnings per share in the range of $4-$4.53, and adjusted EBITDA is expected within $725-$765 million.
Also, LifePoint Health projects revenues within $6.35-$6.43 billion, same hospital revenue growth of 1.4% to 2.7%, and capital expenditures of $475 million to $500 million.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in fresh estimates. There have been three revisions higher for the current quarter compared to two lower.
LifePoint Health, Inc. Price and Consensus
VGM Scores
At this time, LPNT has an average Growth Score of C, though it is lagging a bit on the momentum front with a D. However, the stock was allocated a grade of A on the value side, putting it in the top quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Our style scores indicate that the stock is more suitable for value investors than growth investors.
Outlook
Estimates have been broadly trending upward for the stock and the magnitude of these revisions indicates a downward shift. Notably, LPNT has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Image: Bigstock
Why Is LifePoint Health (LPNT) Down 2.9% Since its Last Earnings Report?
It has been about a month since the last earnings report for LifePoint Health, Inc. . Shares have lost about 2.9% in that time frame.
Will the recent negative trend continue leading up to its next earnings release, or is LPNT due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
LifePoint Health Q4 Earnings Miss on Lower Revenues
LifePoint Health, Inc. reported earnings of 77 cents per share in fourth-quarter 2017 that missed the Zacks Consensus Estimate by 4.94%. Also, the figure declined 41.5% year over year.
Operational Update
Revenues of $1.49 billion missed the Zacks Consensus Estimate by 5.3% and fell roughly 5.2% year over year.
Provision for doubtful accounts was $282.4 million in the reported quarter, up 22.7% year over year.
Equivalent admissions declined 3% year over year to 172,791 and revenue per equivalent admission was down 4.2% year over year to $8625.
Total expenses of $1.55 billion increased 1.3% year over year.
At the end of the fourth quarter, the company had 71 hospitals compared with 72 hospitals in the year-ago quarter.
Financial Update
As of Dec 31, 2017, the company had total assets of $6.29 billion, down 0.5% year over year.
Cash and cash equivalents totaled $112 million, up 16.5% year over year.
As of Dec 31, 2017, long-term debt declined 0.5% to $2.88 billion from year-end 2016.
Net cash provided by operating activities totaled $178.2 million, up 73.9% year over year.
2018 Guidance
The company expects earnings per share in the range of $4-$4.53, and adjusted EBITDA is expected within $725-$765 million.
Also, LifePoint Health projects revenues within $6.35-$6.43 billion, same hospital revenue growth of 1.4% to 2.7%, and capital expenditures of $475 million to $500 million.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed an upward trend in fresh estimates. There have been three revisions higher for the current quarter compared to two lower.
LifePoint Health, Inc. Price and Consensus
LifePoint Health, Inc. Price and Consensus | LifePoint Health, Inc. Quote
VGM Scores
At this time, LPNT has an average Growth Score of C, though it is lagging a bit on the momentum front with a D. However, the stock was allocated a grade of A on the value side, putting it in the top quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Our style scores indicate that the stock is more suitable for value investors than growth investors.
Outlook
Estimates have been broadly trending upward for the stock and the magnitude of these revisions indicates a downward shift. Notably, LPNT has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.