Concentra Q3 revenue beats estimates on higher patient visits

Overview

• Concentra Q3 revenue grows 17% yr/yr, beating analyst expectations

• Company raises FY 2025 guidance, indicating confidence in future performance

• Board authorizes $100 mln share repurchase program, reflecting strategic financial management

Outlook

• Concentra raises 2025 revenue guidance to $2.145 bln - $2.160 bln

• Company expects 2025 Adjusted EBITDA of $425 mln - $430 mln

• Concentra targets net leverage ratio of 3.5x or below by end of 2025

Result Drivers

• VISIT GROWTH - Patient visits increased 9.2% yr/yr, contributing to revenue growth

• RATE GROWTH - Revenue per visit rose 4.2% yr/yr, supporting overall revenue increase

• INORGANIC STRATEGY - Expansion of health centers and clinics supported growth

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 7 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the healthcare facilities & services peer group is "buy"

• Wall Street's median 12-month price target for Concentra Group Holdings Parent Inc is $27.50, about 30.4% above its November 5 closing price of $19.14

• The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 14 three months ago

Press Release: ID:nBw3VHTmYa

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)