HeaAstranalthcare firm misses Q3 revenue expectations

Overview

• Astrana Q3 revenue doubles yr/yr but misses analyst expectations

• Adjusted EBITDA for Q3 rises 52% to $68.5 mln, at higher end of guidance

• Company completes Prospect Health acquisition, performance exceeds expectations

Outlook

• Astrana updates full-year 2025 guidance due to full-risk contract delays

• Company expects full-year 2025 revenue between $3.1 bln and $3.18 bln

• Astrana anticipates full-year 2025 adjusted EBITDA between $200 mln and $210 mln

Result Drivers

• PROSPECT HEALTH ACQUISITION - Acquisition of Prospect Health exceeded performance expectations, contributing to revenue growth and expanded operational scale

• MEDICAL COST CONTROL - Co continues to control medical costs effectively, reiterating full-year trend expectations

• STRATEGIC PARTNERSHIP - Partnership with Intermountain Health aims to expand access to coordinated care and enhance healthcare infrastructure

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 8 "strong buy" or "buy", 2 "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 Astrana Health Inc is $45.00, about 26.1% above its November 5 closing price of $33.24

• The stock recently traded at 18 times the next 12-month earnings vs. a P/E of 15 three months ago

Press Release: ID:nPn9hhZqla

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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.)