CareMax Delivers Mixed Q2 Results

CareMax (CMAX), a leading provider of value-based care to seniors, delivered mixed second-quarter results. The company reported strong revenue growth, but earnings missed analysts’ estimates.

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Revenue nearly doubled, landing at $44.9 million compared to $25.8 million reported the same quarter last year. However, earnings plunged to a net loss of $0.26 a share versus earnings of $0.31 a share delivered the same quarter last year. Due to COVID-19 headwinds, adjusted EBITDA landed at $1.5 million.

Looking ahead, the focus shifts towards pursuing organic growth and improving the care model. Additionally, CareMax has a strong and sustainable foundation of profitability after merging with IMC and closing the Senior Medical Associates acquisition. (See CareMax stocks charts on TipRanks)

CareMax has also partnered with Anthem and The Related Companies, paving the way for the opening of more CareMax centers inside or near affordable senior housing centers across the country. Over the next three years, the company plans to open up to 75 new CareMax centers.

“We believe we have the ability to deliver consistent, replicable results nationwide, giving us conviction to accelerate our de novo growth with a goal of opening at least 75 new CareMax centers in the next three years,” said CEO Carlos de Solo.

CareMax exited the quarter with 61,500 total members and 21,500 Medicare Advantage members.

Last month, Piper Sandler analyst Jessica Tassan reiterated a Hold rating on the stock with a $14 price target, implying 67.46% upside potential to current levels. According to the analyst, execution risk is a challenge that could keep the shares range-bound.

CMAX scores a 4 out of 10 on TipRanks’ Smart Score rating system, suggesting that the stock is likely to perform in line with market averages.