October 27, 2022

I’ve been trying to figure out a way to efficiently share expected earnings dates, consensus earnings expectations and other key data points with you. In that effort, I’ve programmed a spreadsheet to pull data from one of my sources (image below).

Q3 and 2022 Earnings Estimates, OPCH Reports

I believe this will be helpful for you as it shows: (1) the number of days until the next quarterly report and the expected date, (2) consensus revenue and EPS estimates for the upcoming quarter as well as calculated growth rates, and (3) consensus revenue and EPS estimates for the full current year, along with calculated growth rates.

I may tweak this dataset in the future and include/exclude information relevant at the time. If you have any feedback, please share. Also, keep in mind this is a data feed and there are occasionally small errors and/or discrepancies with sources you use (for instance % changes can get funky) due to how data is pulled from various providers.

Option Care Health (OPCH) reported Q3 results this morning with revenue of $1.02 billion (+14.4%) beating by $23.7 million and EPS of $0.21 beating by a penny. Adjusted EBITDA margin of 8.4% was a fraction below expectations. Management raised the low end of full-year 2022 revenue guidance by $5 million to a new range of $3.9 billion to $3.95 billion. Operating cash flow guidance of at least $250 million was maintained. Acquisition of Rochester Home Infusion (for $27.4 million) announced using cash on hand. Rochester is the only home infusion provider in Southern Minnesota and covers seven states. Management also said it would divest the non-core respiratory therapy business by the end of the year and these two deals will offset in terms of EBITDA. The stock’s decline today is a bit of a puzzler, possibly tied to concerns about labor/staffing costs. On balance, seems like a good report and I’d expect OPCH to bounce back in the coming days/weeks. That said, I’ll be watching closely and will cut the position if it drifts lower as I don’t want to risk much more than -10% (current return is -7%). BUY

Tyler Laundon

Tyler Laundon is chief analyst of the limited-subscription advisory, Cabot Small-Cap Confidential and grand slam advisory Cabot Early Opportunities. He has spent his entire career managing, consulting and analyzing start-up and small-cap companies. His hands-on experience has taught Tyler that the development of a superior business model is the biggest factor in determining a company’s long-term success. Accordingly, his research focuses on assessing the viability of management’s growth strategies, trends in addressable markets and achievement of major developmental milestones.