RadNet Slips 4% as Investors Frown on Mixed Q1 Performance

Radiology company RadNet, Inc. (NASDAQ: RDNT) recently reported mixed results for the first quarter ended March 31, 2022.

Following the results, shares of the company declined 4.4% to close at $18.16 in Monday’s extended trading session.

Revenue & Earnings

Revenues for the quarter stood at $341.8 million, up 8.4% year-over-year. Further, the figure surpassed the consensus estimate of $330.41 million. Service fee revenue grew 8.5% year-over-year to $303.3 million and contributed to the overall growth in revenues.

The company reported a loss of $0.15 per share against the consensus estimate of $0. RadNet had posted earnings of $0.05 per share in the same quarter last year.

Outlook

For the Fiscal Year 2022, the company forecasts revenues in the range of $1,360 million to $1,410 million, up from the previous guidance of $1,350 million to $1,400 million. The consensus estimate for the same is pegged at $1,380 million.

Stock Rating

The Wall Street community is cautiously optimistic about the stock and has a Moderate Buy consensus rating based on two unanimous Buys. RDNT’s average price target of $32.50 implies that the stock has upside potential of 79% from current levels. Shares have declined 20.4% over the past year.

Investors’ Stance

TipRanks’ Stock Investors tool shows that investors currently have a Neutral stance on RDNT, as 0.7% of portfolios tracked by TipRanks increased their exposure to RDNT stock over the past 30 days.

Conclusion

RadNet’s quarterly losses remain a point of concern for the company. However, rising revenues and its revised guidance can prove to be beneficial for the stock.

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