RadNet reports Q3 adjusted EPS 18c, consensus 15c

Reports Q3 revenue $461.1M, consensus $437.88M. Howard Berger, President and Chief Executive Officer of RadNet (RDNT), commented, “We continue to demonstrate strong growth and record results in each of our Imaging Center and Digital Health reportable operating segments. Total Company Revenue grew 14.7% as compared with last year’s third quarter to a record $461.1 million. The Digital Health segment Revenue of $16.4 million increased 34.3% from last year’s same quarter. The strong growth in Digital Health was, in part, driven by the AI businesses, whose Revenue increased 75.8% as compared with last year’s third quarter, mainly from the continuing success of the rollout of the Enhanced Breast Cancer Detection DeepHealth AI-powered screening mammography program. Despite continued inflation in staffing costs, improved reimbursement from commercial and capitated payors, strong demand for advanced imaging modalities, the growth of the Digital Health businesses and effective cost controls resulted in an increase to Adjusted EBITDA margins. Total Company Adjusted EBITDA margin of 16.0% during this third quarter increased by 156 basis points over last year’s third quarter.”