As the Q4 earnings season comes to a close, it’s time to take stock of this quarter’s best and worst performers in the healthcare providers & services industry, including Pediatrix Medical Group (NYSE:MD) and its peers.

The healthcare providers and services sector, encompassing insurers to hospitals to outpatient care facilities, benefit from the consistent demand for healthcare services. Stable or even recurring revenues can be earned through insurance premiums, patient care contracts, and testing services agreements. However, the business models face challenges such as high operational costs especially if significant labor is involved. Reimbursement pressures from public and private payers can impact margins and an evolving regulatory landscape adds uncertainty to it all. Looking forward, this sector is poised to benefit from tailwinds such as the aging population, which means rising prevalence of chronic diseases. There is also broad demand for value-based care models, which emphasize cost efficiency and patient outcomes. Advances in telehealth, data analytics, and personalized medicine are likely to create new revenue opportunities for companies that can successfully digitize. However, headwinds abound, including labor shortages in clinical settings, continued reimbursement cuts, and regulatory scrutiny over pricing and care quality.

The 40 healthcare providers & services stocks we track reported a satisfactory Q4. As a group, revenues beat analysts’ consensus estimates by 1.6% while next quarter’s revenue guidance was in line.

In light of this news, share prices of the companies have held steady. On average, they are relatively unchanged since the latest earnings results.

Pediatrix Medical Group (NYSE:MD)

With a network of approximately 2,620 affiliated physicians caring for some of the most vulnerable patients, Pediatrix Medical Group (NYSE:MD) provides specialized physician services focused on neonatal, maternal-fetal, pediatric cardiology and other pediatric subspecialty care across 37 states.

Pediatrix Medical Group reported revenues of $502.4 million, up 1.2% year on year. This print exceeded analysts’ expectations by 3.6%. Overall, it was an exceptional quarter for the company with an impressive beat of analysts’ same-store sales and EPS estimates.

“Our strong fourth quarter results reflect continued top-line outperformance versus our expectations, the completion of our portfolio restructuring, and the related overhead expense reductions,” said Mark S. Ordan, Chief Executive Officer of Pediatrix Medical Group.

The stock is down 2.9% since reporting and currently trades at $13.71.

Is now the time to buy Pediatrix Medical Group? Access our full analysis of the earnings results here, it’s free.

Best Q4: Option Care Health (NASDAQ:OPCH)

With a nationwide network of 177 locations serving 43 states and a team of over 4,500 clinicians, Option Care Health (NASDAQ:OPCH) is the largest independent provider of home and alternate site infusion services, delivering medications and clinical support to patients across the United States.

Option Care Health reported revenues of $1.35 billion, up 19.7% year on year, outperforming analysts’ expectations by 4.9%. The business had an exceptional quarter with a solid beat of analysts’ full-year EPS guidance estimates and an impressive beat of analysts’ EPS estimates.

The market seems happy with the results as the stock is up 6.2% since reporting. It currently trades at $34.67.

Is now the time to buy Option Care Health? Access our full analysis of the earnings results here, it’s free.

Weakest Q4: agilon health (NYSE:AGL)

Transforming how doctors care for seniors by shifting financial incentives from volume to outcomes, agilon health (NYSE:AGL) provides a platform that helps primary care physicians transition to value-based care models for Medicare patients through long-term partnerships and global capitation arrangements.

agilon health reported revenues of $1.52 billion, up 44.2% year on year, in line with analysts’ expectations. It was a softer quarter as it posted full-year EBITDA guidance missing analysts’ expectations significantly and a significant miss of analysts’ EPS estimates.

agilon health delivered the weakest full-year guidance update in the group. The company added 2,000 customers to reach a total of 527,000. Interestingly, the stock is up 19.3% since the results and currently trades at $4.32.

Read our full analysis of agilon health’s results here.

Addus HomeCare (NASDAQ:ADUS)

Serving approximately 66,000 clients across 22 states with a focus on "dual eligible" Medicare and Medicaid beneficiaries, Addus HomeCare (NASDAQ:ADUS) provides in-home personal care, hospice, and home health services to elderly, chronically ill, and disabled individuals.

Addus HomeCare reported revenues of $297.1 million, up 7.5% year on year. This print surpassed analysts’ expectations by 2.7%. Overall, it was a very strong quarter as it also put up an impressive beat of analysts’ sales volume estimates and a decent beat of analysts’ EPS estimates.

The stock is down 15.5% since reporting and currently trades at $91.92.

Read our full, actionable report on Addus HomeCare here, it’s free.

Humana (NYSE:HUM)

With over 80% of its revenue derived from federal government contracts, Humana (NYSE:HUM) provides health insurance plans and healthcare services to approximately 17 million members, with a strong focus on Medicare Advantage plans for seniors.

Humana reported revenues of $29.2 billion, up 13.5% year on year. This result topped analysts’ expectations by 1.1%. Taking a step back, it was a mixed quarter as it also logged full-year revenue guidance exceeding analysts’ expectations but a significant miss of analysts’ EPS  estimates.

The company lost 11,000 customers and ended up with a total of 16.35 million. The stock is flat since reporting and currently trades at $268.55.

Read our full, actionable report on Humana here, it’s free.

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