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BANNOCKBURN, Ill. - Option Care Health, Inc. (NASDAQ:OPCH), the nation’s largest independent provider of home and alternate site infusion services, reported third-quarter earnings that exceeded analyst expectations, but shares tumbled 7.5% as investors focused on the company’s earnings guidance.
The company reported adjusted earnings per share of $0.45 for the third quarter, beating the analyst estimate of $0.43. Revenue came in at $1.44 billion, surpassing the consensus estimate of $1.41 billion and representing a 12.2% increase YoY. Despite these positive results, the stock fell sharply in trading following the announcement.
Option Care Health updated its full-year 2025 guidance, projecting adjusted earnings per share of $1.68 to $1.72, compared to the analyst consensus of $1.71. The company expects revenue between $5.60 billion and $5.65 billion, which aligns with the consensus estimate of $5.625 billion. The midpoint of the EPS guidance range ($1.70) is slightly below the analyst consensus, potentially contributing to the negative market reaction.
"The Option Care Health team delivered another strong quarter with balanced growth across the portfolio," said John C. Rademacher, Chief Executive Officer. "I’d like to thank our team for their extraordinary execution and continued dedication to providing access to quality care to more patients."
The company reported gross profit of $272.9 million, up 6.3% YoY, while net income decreased 3.8% to $51.8 million. Adjusted EBITDA rose 3.4% to $119.5 million. During the quarter, Option Care Health repurchased $62.5 million of stock and expanded its term loan by $49.6 million while reducing the interest rate.
The company also noted that it expects cash flow from operations of at least $320 million for the full year, with an effective tax rate between 25% and 27%.
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