InnovAge (NASDAQ:INNV) Posts Earnings Results

InnovAge (NASDAQ:INNV) issued its quarterly earnings data on Tuesday. The company reported $0.14 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.09 by $0.05, FiscalAI reports. InnovAge had a negative return on equity of 1.03% and a negative net margin of 0.26%. The company had revenue of $264.76 million during the quarter, compared to analysts’ expectations of $257.23 million.

Here are the key takeaways from InnovAge’s conference call:

• Strong first-quarter performance: Revenue rose 12.1% to $264.8 million, Adjusted EBITDA increased more than 75% to $31.3 million, and ending census grew 6.7% to 8,420 participants. Adjusted EBITDA margin expanded to 11.8% from 7.5% year over year.
• External provider cost per participant declined, helped by lower assisted-living, permanent nursing-facility, and pharmacy expenses. Management attributed the improvement to stronger provider engagement, in-house specialist care, after-hours nursing, and continued pharmacy operational improvements.
• Management reaffirmed fiscal 2027 guidance, including revenue of $1.05 billion-$1.085 billion and Adjusted EBITDA of $105 million-$115 million. The company expects census to reach 8,625-8,850 participants by year-end.
• InnovAge expects normal PACE seasonality to moderate results after the unusually strong first quarter, including higher medical costs, risk-score decay, annual labor-cost increases, and enrollment pressure during Medicare open enrollment.
• The transition to the V28 Medicare risk-adjustment model remains a reimbursement risk as the blend shifts to 50% V28 in January. Management expects Medicare rates to rise only 1.5%-2% and noted that California Medicaid rates have not yet been finalized, although both factors are reflected in guidance.

InnovAge Price Performance

Shares of INNV stock traded up $0.92 during trading hours on Wednesday, hitting $9.77. 172,816 shares of the company’s stock were exchanged, compared to its average volume of 380,520. InnovAge has a 52 week low of $3.93 and a 52 week high of $12.64. The stock has a market cap of $1.33 billion, a price-to-earnings ratio of -489.80 and a beta of 0.16. The company has a debt-to-equity ratio of 0.23, a current ratio of 1.05 and a quick ratio of 1.05. The stock’s 50-day moving average is $9.75 and its 200-day moving average is $9.07.

Insider Buying and Selling

In other InnovAge news, major shareholder Carson Anderson & Stow Welsh sold 1,500,000 shares of the stock in a transaction dated Wednesday, October 21st. The shares were sold at an average price of $9.25, for a total transaction of $13,875,000.00. Following the sale, the insider owned 101,076,555 shares of the company’s stock, valued at $934,958,133.75. This represents a 1.46% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, insider Nicole Damato sold 23,814 shares of the firm’s stock in a transaction dated Friday, September 25th. The shares were sold at an average price of $8.70, for a total transaction of $207,181.80. Following the completion of the sale, the insider owned 304,897 shares of the company’s stock, valued at $2,652,603.90. The trade was a 7.24% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 13,027,216 shares of company stock worth $120,489,535 in the last 90 days. Corporate insiders own 1.10% of the company’s stock.

Analyst Upgrades and Downgrades

A number of brokerages recently issued reports on INNV. Wall Street Zen cut shares of InnovAge from a “strong-buy” rating to a “buy” rating in a research report on Sunday, October 18th. KeyCorp boosted their price target on shares of InnovAge from $13.00 to $14.00 and gave the company an “overweight” rating in a research report on Wednesday, September 9th. Finally, Weiss Ratings reaffirmed a “sell (d-)” rating on shares of InnovAge in a research note on Thursday, August 13th. One investment analyst has rated the stock with a Buy rating, one has assigned a Hold rating and two have assigned a Sell rating to the company’s stock. According to MarketBeat, the company has a consensus rating of “Reduce” and an average target price of $10.50.

InnovAge Company Profile

InnovAge (NASDAQ: INNV) is a healthcare services company that provides comprehensive care for older adults through the Program of All-Inclusive Care for the Elderly (PACE). Its model is designed to help eligible seniors remain living in their homes and communities rather than moving to nursing facilities, while coordinating medical, social, and supportive services through an integrated care program.

InnovAge’s services may include primary and specialty medical care, nursing, physical and occupational therapy, behavioral health, pharmacy services, dentistry, vision care, meals, transportation, social services, and in-home support.