Medical equipment services and respiratory care company Viemed Healthcare announced its Q2-2022 and H1-2022 financial results yesterday after market close. The market didn’t seem to like the report, as the stock finished 14.2% lower. Q2 core revenues hit a record of $33.1 million, a 26% increase, beating estimates by $0.8 million. However, GAAP EPS came in at $0.02 compared to $0.04 last year, missing the consensus estimate of $0.06 per share. Please note that all figures are in U.S. Dollars.
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Further, adjusted EBITDA came in at nearly $6.5 million for the quarter compared to $6.85 million last year. Total revenue was $33.3 million when including COVID-19-related services, and Viemed expects next quarter’s revenues to come in between $34.5 million and $35.5 million, which would represent year-over-year growth of 19.5% at the midpoint.
VMD says its revenue growth is due to the “release of pent-up demand in the health care system, re-enforcing the critical need for cost-effective home-based treatment solutions.”
For the six months ended June 30, 2022, VMD repurchased $7 million worth of shares at an average price of $5.18 per share. With a current share price of $6.83, it seems that VMD got a good deal.
Also, the number of ventilator patients increased 9% year-over-year to 8,837. The company seems to have a solid balance sheet as well, ending the quarter with $21.9 million in cash and long-term debt of just $4.2 million.
TipRanks Investors are Very Bullish on Viemed Stock
Out of the 549,735 portfolios tracked by TipRanks, less than 0.1% hold VMD stock. However, investors who hold portfolios on TipRanks seem to view the stock positively for now.
In the last 30 days, the number of TipRanks portfolios holding VMD stock increased by 5%. In the last seven days, this number increased by 0.5%. As a result, the stock’s sentiment is very positive, above the sector average, as demonstrated in the following image:
Wall Street’s Take on VMD Stock
Turning to Wall Street, Viemed Healthcare stock earns a Moderate Buy consensus rating based on just one Buy rating assigned in the past three months. The average VMD stock price target of $9.72 implies 42.3% upside potential from its current price of $6.83.
Conclusion: Viemed’s Results Didn’t Impress the Market
Although Viemed slightly beat revenue expectations, the earnings miss seems to have turned off investors. As a result, the stock finished significantly lower today.
Nonetheless, the company is seeing solid revenue growth that is expected to continue in the next quarter, and the one analyst that covers the stock expects 42.3% upside potential. Also, TipRanks investors seem to be optimistic about the stock.
