Quipt Home Medical Corp (NASDAQ: QIPT) has confirmed that it will release fiscal Q4 2021 earnings on Monday, December 20, 2021, after markets close.
What to look for
Earnings: Stockearning’s Estimated EPS is expected to be better than the EPS of $0.02 reported in Q3 2021. In the third quarter, the company missed EPS estimates by 33.33%. Historical EPS Performance in the past 12 quarters indicates that the company has missed estimates once (50%) and has never beat earnings estimates.
Revenue: In the third quarter, the company reported revenue of $26.2 million relative to $18.6 million a year ago, representing a YoY increase of 41%. As of Q3, the company's recurring revenue continued to be robust, exceeding 75% of total revenue. In addition, the company reiterated its revenue guidance for the 2022 calendar of between $180 million and $190 million with adjusted EBITDA of $38 million and $432 million based on current market trends, business, and prospective and completed acquisitions.
Stock movement: QIPT shares have lost 5% since the last earnings release. On the other hand, Quipt Home Medical shares have been UP once in the last two quarters following the earnings release. So, the historical price reaction suggests a 50% probability of the share price going UP once QIPT reports its fiscal Q4 earnings. According to the Stockearning algorithm, the predicted first-day move is 8%, while the predicted move on the seventh day is 7%.
What analysts are saying
Canaccord analyst Tania Gonsalves raised her target price in Quipt Home Medical from CA$10 to CA$11 and maintained a Buy rating on the stock. Gonsalves stated that on the back of the M&A pipeline and based on the current business, favorable sector dynamics, and strong acquisition pipeline, Quip unveiled new adjusted EBITDA and revenue guidance leading to her raising the price target.
Stifel analyst Justin Keywood also raised his price target on Quipt Home medical from CA$12.4 to CA$12.75 and maintained a “Buy” rating on the stock.
Benchmark analyst Bill Sutherland commenced coverage on the stock with a “Buy” rating and a price target of $7.5 on the share. Sutherland noted that the company, which was previously called Protech Home Medical, offers home medical equipment focusing on the rapidly growing segment of home respiratory products. The analyst told investors that the stock is selling at a discount currently to the average valuation of peers of slow-growing home medical services and equipment companies. In addition, Sutherland pointed out that the company has set a CAGR revenue target of 26% for the next three years.
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