Option Care Health Q3 2024 Earnings Report
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.
Option Care Health
Option Care Health
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.
- The company is actively monitoring the situation and collaborating with manufacturers and distributors.
- The updated guidance reflects the expected negative impact from the supply chain issues.