The Joint Gears Up for Q4 Earnings: Here's What to Expect

Zacks
12 Mar

Franchisor and operator of chiropractic clinics The Joint Corp. JYNT is set to report its fourth-quarter 2024 results on March 13, 2025, after the closing bell. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings and revenues is pegged at 6 cents per share and $28.95 million, respectively.

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The earnings estimate for the to-be-reported quarter has remained stable over the past 60 days. However, the bottom-line projection indicates a year-over-year decrease of 14.3%. Also, the Zacks Consensus Estimate for quarterly revenues suggests a year-over-year fall of 5.4%.

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For 2024, the Zacks Consensus Estimate for The Joint’s revenues is pegged at $119.14 million, implying a rise of 1.1% year over year. The consensus mark for current-year EPS is pegged at a loss of 33 cents, implying a plunge of 320% on a year-over-year basis.

The Joint beat the consensus estimate for earnings in two of the trailing four quarters, met once and missed on the other occasion, with the average surprise being negative 16.7%, as you can see below.

The Joint Corp. Price and EPS Surprise

The Joint Corp. price-eps-surprise | The Joint Corp. Quote

The Joint’s Q4 Earnings Whispers

Our proven model does not conclusively predict an earnings beat for JYNT this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) increases the chances of an earnings beat. That is not the case here, as you will see below.

JYNT has an Earnings ESP of 0.00% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

You can see the complete list of today’s Zacks #1 Rank stocks here.

Let’s see how things have shaped up before the fourth-quarter earnings announcement.

Q4 & 2024 Factors to Note for The Joint

While Royalty fees, Software fees and Advertising fund revenues are expected to have increased in the fourth quarter, revenues from company-owned or managed clinics are likely to have declined, affecting the top line.

Increased regional developer royalties and commissions are likely to have hiked the cost of revenues in the to-be-reported quarter. Also, selling and marketing expenses are likely to have increased total costs, leading to lower margins, making an earnings beat uncertain.

However, system-wide sales are likely to have increased in the fourth quarter. For the full year, system-wide sales are expected to have increased 9%.

The company estimates 2024 patient visits to be 14.7 million, up from 13.6 million a year ago. It expects new patient treatment to have increased 2.7% for the full year 2024. It is expected to have sold 46 franchise licenses, a 16.4% decline from a year ago. The total clinic count from 2024 is expected to have increased 3.4% year over year to 967.

How Did Other Stocks Perform?

Here are some stocks in the broader Medical space that have already reported earnings for this quarter: HCA Healthcare, Inc. HCA, The Ensign Group, Inc. ENSG and The Cigna Group CI.

HCA Healthcare reported fourth-quarter 2024 adjusted EPS of $6.22, which outpaced the Zacks Consensus Estimate by 4.2%, driven byhigher patient volumes giving rise to an increased number of inpatient surgeries and same-facility emergency room visits. However, the upside was partly offset by elevated salaries and benefits expenses. Additional expenses due to Hurricane Helene and Hurricane Milton also impacted the results.

Ensign reported fourth-quarter 2024 adjusted earnings per share of $1.49, which outpaced the Zacks Consensus Estimate by 1.4% thanks to improved occupancy rates, higher patient days and higher skilled service revenues. The positives were partly offset by an elevated expense level due to the higher cost of services and rents. 

Cigna reported fourth-quarter 2024 adjusted earnings per share of $6.64, which missed the Zacks Consensus Estimate by 15.2% due to a decline in its overall medical customer base and elevated medical costs. Nevertheless, the downside was partly offset by expanding specialty volumes in the Evernorth Health Services segment and new client wins.

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Cigna Group (CI) : Free Stock Analysis Report

HCA Healthcare, Inc. (HCA) : Free Stock Analysis Report

The Ensign Group, Inc. (ENSG) : Free Stock Analysis Report

The Joint Corp. (JYNT) : Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

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