Robinhood shares gain on Q2 beat, as user and crypto growth accelerate
Quipt Home Medical Corp. (QIPT) stock has reached a 52-week low, touching down at $2.6, marking a significant downturn for the company within the last year. This latest price level reflects a stark contrast to the stock's performance over the past year, with Quipt Home Medical experiencing a substantial 1-year change of -51.88%. Investors are closely monitoring the company's performance, as the current valuation represents a critical juncture for the home medical equipment provider, which has faced headwinds in the market. The 52-week low serves as a key indicator of the company's recent struggles and may influence investor decisions moving forward.
In other recent news, Quipt Home Medical Corp demonstrated steady growth in its third quarter of fiscal year 2024, with revenues reaching $64 million, marking a 6.1% rise from the previous year. Adjusted EBITDA also saw an increase of 2.7% to $14.2 million. Despite challenges such as the expiration of Medicare's 75/25 rate relief, a diminished Managed Care contract, and the aftermath of the Change Healthcare (NASDAQ:CHNG) cyberattack, the company managed to maintain its revenue levels.
Benchmark revised its stock price target for Quipt Home Medical, reducing it to $7 from the previous $9, while maintaining a Buy rating. This adjustment came after Quipt's Q3 report, which showed revenue growth that was essentially flat and slightly below consensus expectations. However, the firm anticipates an 8%-10% organic growth rate for Quipt by the second quarter of fiscal 2025.
These recent developments are partly due to Quipt Home Medical's ongoing contract growth with payers, market expansion efforts, and sales team enhancements. The company also reported a 9% increase in resupply revenue for sleep therapy and supplies, which accounts for half of the company's revenues. Quipt Home Medical has indicated an active mergers and acquisitions pipeline, promising further growth opportunities.
InvestingPro Insights
Quipt Home Medical Corp. (QIPT) has indeed been under considerable pressure, as reflected by its recent 52-week low. However, looking at the data from InvestingPro, there are signs that may interest investors. The company's revenue has grown by 29.31% over the last twelve months as of Q3 2024, indicating a robust capacity to generate sales. Additionally, the gross profit margin stands at an impressive 72.34%, showcasing the company's efficiency in maintaining profitability on its products and services.
InvestingPro Tips suggest that while the stock has fared poorly over the last month, with a 22.1% decrease in price total return, analysts predict that the company will be profitable this year. This could signal potential for a turnaround. Furthermore, the valuation implies a strong free cash flow yield, which might appeal to investors looking for companies with the potential to generate cash.
Investors can find more insights and tips on Quipt Home Medical Corp., including additional InvestingPro Tips, by visiting https://www.investing.com/pro/QIPT.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.