Fubotv earnings beat by $0.10, revenue topped estimates
On Tuesday, JMP Securities analyst Constantine Davides reaffirmed a Market Outperform rating and a $36.00 price target for Option Care Health (NASDAQ:OPCH), a $5 billion market cap healthcare services provider. Trading at $30.69, the stock has strong support from Wall Street, with InvestingPro data showing analyst targets ranging from $34 to $41. The company reported its first-quarter financial results for 2025, showcasing significant revenue growth which surpassed analyst expectations. Option Care Health’s revenue reached $1.33 billion, marking a 16% increase year-over-year and exceeding both JMP’s estimate of $1.25 billion and the consensus estimate of $1.26 billion.
The substantial revenue growth was largely attributed to a mid-teens increase in acute therapies and a high-teens increase in chronic therapies. This deviation from the more typical low-single digit growth in acute revenue was linked to improved supply chain dynamics, such as better availability of intravenous bags, and favorable competitive dynamics, including the retrenchment of competitor Coram. Additionally, management highlighted the strong performance of rare and limited distribution therapies as a key driver of the growth in chronic therapies.
Option Care Health also reported a 10% year-over-year increase in gross profit, which amounted to $263.1 million, surpassing JMP’s estimate of $250.9 million. Adjusted EBITDA for the quarter was reported at $111.8 million, a 14% increase from the previous year, and exceeded both JMP’s estimate of $99.0 million and the consensus of $102.5 million.
The analyst’s reiteration of the Market Outperform rating reflects confidence in Option Care Health’s performance and potential for continued growth. The company’s strong first-quarter results underscore its success in navigating supply chain challenges and capitalizing on competitive advantages within the industry. Trading at a P/E ratio of 24.5, InvestingPro analysis suggests the stock is currently undervalued, with additional insights available in the comprehensive Pro Research Report, which offers deep-dive analysis of 1,400+ top US stocks. The reaffirmed $36.00 price target indicates JMP’s belief in the company’s ability to sustain its upward trajectory in financial performance.
In other recent news, Option Care Health reported strong financial results for the first quarter of 2025, with earnings per share (EPS) reaching $0.40, surpassing the forecasted $0.33. The company’s revenue increased by 16% year-over-year to $1.32 billion, reflecting robust growth across its service offerings. Despite these positive results, the company’s stock experienced a decline, which may be attributed to broader market conditions. Additionally, UBS analyst AJ Rice upgraded Option Care Health’s stock from Neutral to Buy, raising the price target to $40.00, citing strong earnings momentum and potential benefits from a shift to home care. The company also opened three new infusion clinics and expanded its technology capabilities, aiming to bolster future growth through strategic partnerships and acquisitions. Management anticipates a $60-70 million impact from STELARA, a drug used in treatments provided by the company, for the full year. Looking ahead, Option Care Health forecasts 2025 revenue between $5.4 billion and $5.6 billion, with adjusted EPS projected between $1.61 and $1.70.
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