As the craze of earnings season draws to a close, here’s a look back at some of the most exciting (and some less so) results from Q1. Today, we are looking at healthcare technology for providers stocks, starting with Premier (NASDAQ:PINC).
The healthcare technology industry focuses on delivering software, data analytics, and workflow solutions to hospitals, clinics, and other care facilities. These companies enable providers to streamline operations, optimize patient outcomes, and transition to value-based care models. They boast subscription-based revenues or long-term contracts, providing financial stability and growth potential. However, they face challenges such as lengthy sales cycles, significant upfront investment in technology development, and reliance on providers’ adoption of new tools, which can be hindered by budget constraints or resistance to change. Over the next few years, the sector is poised for growth as providers increasingly prioritize digital transformation and efficiency in response to rising healthcare costs and patient demand for seamless care. Tailwinds include the growing adoption of AI-driven tools for patient engagement and operational improvements, government incentives for digitization, and the expansion of telehealth and remote patient monitoring. However, headwinds such as tightening hospital budgets, cybersecurity threats, and the fragmented nature of healthcare systems could slow adoption.
The 5 healthcare technology for providers stocks we track reported a mixed Q1. As a group, revenues beat analysts’ consensus estimates by 4% while next quarter’s revenue guidance was 0.6% below.
While some healthcare technology for providers stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 4% since the latest earnings results.
Best Q1: Premier (NASDAQ:PINC)
Operating one of the largest healthcare group purchasing organizations in the United States with over 4,350 hospital members, Premier (NASDAQ:PINC) is a technology-driven healthcare improvement company that helps hospitals, health systems, and other providers reduce costs and improve clinical outcomes.
Premier reported revenues of $261.4 million, down 8.9% year on year. This print exceeded analysts’ expectations by 7.4%. Overall, it was a very strong quarter for the company with an impressive beat of analysts’ EPS estimates and a solid beat of analysts’ full-year EPS guidance estimates.
"Our overall revenue and profitability grew sequentially and exceeded our expectations for the third quarter largely due to better-than-anticipated results in our Supply Chain Services segment," said Michael J. Alkire, Premier's President and CEO.
Premier pulled off the biggest analyst estimates beat of the whole group. Unsurprisingly, the stock is up 11.3% since reporting and currently trades at $22.86.
Is now the time to buy Premier? Access our full analysis of the earnings results here, it’s free.
Privia Health (NASDAQ:PRVA)
Operating in 13 states and the District of Columbia with over 4,300 providers serving more than 4.8 million patients, Privia Health (NASDAQ:PRVA) is a technology-driven company that helps physicians optimize their practices, improve patient experiences, and transition to value-based care models.
Privia Health reported revenues of $480.1 million, up 15.6% year on year, outperforming analysts’ expectations by 6.5%. The business had a strong quarter with a solid beat of analysts’ EPS estimates and sales volume in line with analysts’ estimates.
The market seems content with the results as the stock is up 4.2% since reporting. It currently trades at $24.30.
Is now the time to buy Privia Health? Access our full analysis of the earnings results here, it’s free.
Weakest Q1: Evolent Health (NYSE:EVH)
Founded in 2011 to transform how healthcare is delivered to patients with complex needs, Evolent Health (NYSE:EVH) provides specialty care management services and technology solutions that help health plans and providers deliver better care for patients with complex conditions.
Evolent Health reported revenues of $483.6 million, down 24.4% year on year, exceeding analysts’ expectations by 4.9%. Still, it was a mixed quarter as it posted a significant miss of analysts’ EPS estimates.
Evolent Health delivered the highest full-year guidance raise but had the slowest revenue growth in the group. As expected, the stock is down 12.7% since the results and currently trades at $9.40.
Read our full analysis of Evolent Health’s results here.
Astrana Health (NASDAQ:ASTH)
Formerly known as Apollo Medical Holdings until early 2024, Astrana Health (NASDAQ:ASTH) operates a technology-powered healthcare platform that enables physicians to deliver coordinated care while successfully participating in value-based payment models.
Astrana Health reported revenues of $620.4 million, up 53.4% year on year. This result came in 2.5% below analysts' expectations. Overall, it was a slower quarter as it also recorded full-year EBITDA guidance slightly missing analysts’ expectations.
Astrana Health scored the fastest revenue growth but had the weakest performance against analyst estimates and weakest performance against analyst estimates among its peers. The stock is down 17.8% since reporting and currently trades at $27.47.
Read our full, actionable report on Astrana Health here, it’s free.
Omnicell (NASDAQ:OMCL)
Driven by the vision of an "Autonomous Pharmacy" with zero medication errors, Omnicell (NASDAQ:OMCL) provides medication management automation and adherence tools that help healthcare systems and pharmacies reduce errors and improve efficiency.
Omnicell reported revenues of $269.7 million, up 9.6% year on year. This print beat analysts’ expectations by 3.7%. Aside from that, it was a slower quarter as it produced full-year EBITDA guidance missing analysts’ expectations.
The stock is down 4.9% since reporting and currently trades at $29.
Read our full, actionable report on Omnicell here, it’s free.
Market Update
Thanks to the Fed’s series of rate hikes in 2022 and 2023, inflation has cooled significantly from its post-pandemic highs, drawing closer to the 2% goal. This disinflation has occurred without severely impacting economic growth, suggesting the success of a soft landing. The stock market thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% in November), and a notable surge followed Donald Trump’s presidential election win in November, propelling indices to historic highs. Nonetheless, the outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. The path forward holds both optimism and caution as new policies take shape.
Want to invest in winners with rock-solid fundamentals? Check out our Top 6 Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.
Join Paid Stock Investor Research
Help us make StockStory more helpful to investors like yourself. Join our paid user research session and receive a $50 Amazon gift card for your opinions. Sign up here.