PFMT - Performant Financial: Slowly Progressing Towards Long-Term Targets - Hold

2024-06-03 08:13:37 ET

Summary

• Last month, Performant Financial reported first quarter 2024 results slightly ahead of consensus estimates and reiterated full-year expectations.
• Core healthcare revenues increased by approximately 13% with the company's claims-based business showing particular strength.
• The quarter was highlighted by the strategic decision to acquire an AI platform with the potential to improve the company's audit workflow processes quite meaningfully.
• However, immediate benefits to the business are likely to be limited.
• With Performant Financial still not anywhere close to management's stated long-term revenue and profitability targets, I am reiterating my "Hold" rating on the shares.

Note:

I have covered Performant Financial Corporation or "Performant Financial" ( PFMT ) previously, so investors should view this as an update to my earlier articles on the company. ...

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