Change Healthcare Inc. (NasdaqGS:CHNG) is scheduled to report Q2 earnings results after markets close for trading on November 4, 2020.
The company is expected to report earnings of $0.25/share on revenue of $745 million. The consensus earnings per share (EPS) of $0.25/share is based on a poll of 17 analysts and represents a decline in eps of −5.7% over the same quarter last year, when the company reported earnings of $0.27/share.
The revenue forecast of $745 million based on a poll of 15 analysts implies a year-over-year (YoY) decline in revenue of −6.4%. Last year the company reported $795.8 million in revenue for the quarter.
| Metric | Expected | Prior Year | YoY Change |
|---|---|---|---|
| Revenue | $745.02 | $795.81 | −6.4% |
| EPS | $0.25 | $0.27 | −5.7% |
Earnings Call Trends
Historically, management has exceeded analyst expectations 4 out of the last 5 tracked quarters, and met expectations 1 quarter.
What are your expectations from Change Healthcare Inc. for earnings this quarter? Let us know in the comments!
| Quarter | Expected | Reported | Surprise | Result |
|---|---|---|---|---|
| Q1, 2021 | $0.15 | $0.25 | 70.0% | Beat |
| Q4, 2020 | $0.37 | $0.42 | 14.8% | Beat |
| Q3, 2020 | $0.31 | $0.33 | 7.4% | Beat |
| Q2, 2020 | $0.27 | $0.27 | 0% | Met |
| Q1, 2020 | $0.37 | $0.56 | 53.3% | Beat |
In the following table, we summarize the company’s stock price movements after earnings releases. The “Price Day Prior” column shows the closing stock price on the day before the earnings report, and the “Price Next Day” column shows the stock price at the end of the trading day after the earnings report. After the last earnings report for the period ending June 30, 2020, the stock price reacted by increasing 7.7%.
| Report Date | Price Day Prior | Price Next Day | Change % | Result |
|---|---|---|---|---|
| August 5, 2020 | $12.14 | $13.08 | 7.7% | Increase |
| June 3, 2020 | $12.53 | $11.88 | −5.2% | Decline |
| February 12, 2020 | $15.63 | $16.03 | 2.6% | Increase |
| November 13, 2019 | $13.17 | $13.90 | 5.5% | Increase |
Fundamentals And Technical Analysis
Change Healthcare Inc. is currently trading at $14.18/share, down −3.9% for the day. The company is trading at approximately 80.4% of its 52-week high of $17.57/share. The company’s stock price is up 8.4% since the last earnings report and down −3.2% over the previous week. The company’s 14 Day Relative Price Index (RSI) of 49.04 suggests the company is trading in technically neutral territory. The RSI is considered overbought when above 70 and oversold when below 30.
The current share price implies a price-to-earnings (P/E) multiple of −4.45 and a forward P/E multiple of 11.86.
Change Healthcare Inc.’s current share price also implies a price-to-book (P/B) multiple of 1.33. The following table summarizes some other key fundamental ratios:
| Metric | Value |
|---|---|
| Last Reported Fiscal Period Key | FY2021.Q1 |
| Period End Date | June 30, 2020 |
| Stock Price (Current) | $14.18 |
| P/E Ratio | −4.4x |
| P/E Ratio (Fwd) | 11.9x |
| PEG Ratio | 0.0 |
| Total Debt / Total Capital | 53.8% |
| Levered Free Cash Flow | -$64.6 million |
| Price To Sales | 4.8x |
Change Healthcare Inc. is a mid-cap stock with a market capitalization of $4.488 billion and a total enterprise value of $9.54 billion. The company operates in the Healthcare sector and the Health Care Technology industry.
Change Healthcare Inc., an independent healthcare technology platform, provides data and analytics-driven solutions to enhance clinical, financial, administrative, and patient engagement outcomes in the United States healthcare system. It operates through three segments: Software and Analytics, Network Solutions, and Technology-Enabled Services. The Software and Analytics segment offers software and analytics solutions for financial performance, payment accuracy, clinical decision management, value-based payment, provider and consumer engagement, and imaging and clinical workflow. The Network Solutions segment enables financial, administrative, and clinical transactions; electronic business-to-business and consumer-to-business payments; and aggregation and analytics of clinical and financial data. The Technology-Enabled Services segment provides solutions for financial and administrative management, value-based care, communication and payment, pharmacy benefits administration, and healthcare consulting. The company was founded in 2016 and is headquartered in Nashville, Tennessee.
