WELL:CC - WELL Health Stock Jumps on Record Earnings Time to Buy?
2023-11-14 21:30:00 ET
WELL Health Technologies ( TSX:WELL ) saw shares jump 5% in early trading on Nov. 14, as the health stock announced record earnings for the quarter. The company had several areas of good news, along with an increase in guidance. So, let’s look at what happened during the quarter and see if now is the right time to pick up WELL stock.
What happened?
WELL stock announced its 19th consecutive quarter of record revenue growth for the third quarter this week. The company achieved $204.5 million in revenue, up 40.2% year over year. Furthermore, it also achieved record adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) as well at $28.2 million. Canadian patient services revenue hit $57.8 million, up 27% compared to last year. Further, WELL stock in the United States also climbed to $130.7 million in patient services revenue. This was a 52.3% increase.
The tech stock continued to see organic growth and profitability climb, with adjusted EBITDA of $12.3 million for a year-over-year increase of 24%. Organic growth is already up 16% year to date compared to last year. Adjusted gross profit hit $94.2 million in the third quarter, which was an increase of 20.5% as compared to the year before.
“Q3 was an outstanding quarter for us, as we achieved record patient visits, adjusted EBITDA and posted our first quarter ever with more than $200M in revenues. While all our business units are executing extremely well, our Canadian business grew its adjusted EBITDA by 24% and shows no signs of slowing down … The backbone of our success has been the company’s continued focus on tech enabling healthcare providers and supporting them in simplifying their work lives, modernizing, and digitizing their clinical practices and delivering the best healthcare possible.”
Hamed Shahbazi, founder and chief executive officer (CEO).
Even more updates
If investors thought that WELL stock was going to start perhaps slowing down, it looks like they would be mistaken. WELL stock had several business ventures come through in the quarter, with more on the way. This included the introduction of artificial intelligence and acquisitions.
WELL stock announced the 100% acquisition of CarePlus Medical in the United States, which helped the growth in the country. It also expands the company’s U.S. footprint, specifically through anesthesia providers.
WELL stock also acquired Seekintoo, which provides cybersecurity operations services for its enterprise clients. This will allow for a 24/7 detection responder service against any threats. Finally, the company’s major investment in HEALWELL and its artificial intelligence has set the company up for even more future success.
“Our commitment to ensuring that we support our healthcare providers with the most advanced technology has led us to significant investments in artificial intelligence … This is only the beginning as we have a compelling pipeline of opportunities that leverage the power of AI to give healthcare providers clinical decision support tools that will give them their time back, enhance clinic productivity and provide better patient outcomes.”
Hamed Shahbazi, Founder and CEO.
More near-term growth
As the fiscal year of 2023 comes to a close for WELL stock, it looks like more growth is expected. The company expects to remain strong in the fourth quarter and early 2024. Its objective is now to invest and create growth while still managing costs and creating opportunities.
Annual revenue is now expected to hit between $755 and $765 million for 2023. Furthermore, the company expects that annual revenue for 2024 should be over $900 million and could even surpass $1 billion.
So, as shares continue to climb, it looks like investors and analysts alike are pleased with the performance of WELL stock. And when the market rebounds, it could be one of the stocks that continue to climb well into 2024.
The post WELL Health Stock Jumps on Record Earnings, Time to Buy? appeared first on The Motley Fool Canada .
Fool contributor Amy Legate-Wolfe has positions in Well Health Technologies. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy .
2023