Accendra Health Q1 revenue falls, misses estimates

Overview

• U.S. home-based care provider's Q1 revenue declined and missed analyst expectations

• Adjusted EPS and adjusted EBITDA for Q1 both beat analyst expectations

• Company announced $1.5 bln balance sheet optimization transaction to reduce leverage and extend maturities

Outlook

• Accendra Health affirms prior full-year 2026 guidance for net revenue and adjusted EBITDA

• Company plans to complete balance sheet optimization transaction in the near term

• Outlook assumes stable market conditions, consumer demand, supply chain, and interest rates

Result Drivers

• BUSINESS TRANSFORMATION - Co said results were aligned with expectations as it continues transformation into a pure play home-based care company

• DIVESTITURE TRANSITION - Transition services and separation activity related to the divestiture of Owens & Minor are on track, per CEO Edward Pesicka

Company press release: ID:nBw4lvDcda

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 2 "hold" and 2 "sell" or "strong sell"

• The average consensus recommendation for the medical equipment, supplies & distribution peer group is "buy."

• Wall Street's median 12-month price target for Accendra Health Inc is $3.00, about 16.2% below its May 8 closing price of $3.58

• The stock recently traded at 5 times the next 12-month earnings vs. a P/E of 2 three months ago

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