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Sep 30, 2024
Option Care Health Q3 2024 Earnings Report
Option Care Health's financial performance remained strong, marked by revenue growth and strategic financial management.
Key Takeaways
Option Care Health reported a 17.0% increase in net revenue to $1,278.5 million for the third quarter of 2024. Net income was $53.9 million, or $0.31 per diluted share, while adjusted EBITDA reached $115.6 million. The company faces supply chain disruptions expected to negatively impact fourth-quarter results.
Net revenue increased by 17.0% year-over-year, reaching $1,278.5 million.
Gross profit reached $256.7 million, representing 20.1% of net revenue.
Net income was $53.9 million, with diluted earnings per share at $0.31.
Adjusted EBITDA increased to $115.6 million, a 5.3% increase compared to the previous year.
Forward Guidance
Option Care Health updated its full-year 2024 financial guidance, projecting net revenue between $4.9 billion and $4.95 billion and adjusted EBITDA between $438 million and $443 million. The guidance considers the negative impact of supply chain disruptions.
Positive Outlook
- Net revenue is expected to be between $4.9 billion and $4.95 billion.
- Adjusted EBITDA is projected to be between $438 million and $443 million.
- Cash flow from operations is expected to be at least $300 million.
- The effective tax rate is projected to be between 26% and 28%.
- Net interest expense is expected to be approximately $55 million to $60 million.
Challenges Ahead
- Supply chain disruption related to intravenous solution bags is expected to negatively impact fourth-quarter financial results.
- The company is unable to provide specific expectations on the timing of the ultimate resolution of the supply chain impact.
- The disruption primarily affects the portfolio of acute therapies.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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