Quipt Home Medical Corp T.QIPT

A Rational Response

[retiredcf]

Would appreciate your thoughts on the latest earnings from QIPT and whether to hold, add, or sell with an explanation.

EPS of a loss of 3c missed estimates of (nil); revenue of $63.95M missed estimates of $65.51M. EBITDA of $14.89M missed estimates of $15.07M. Results were hit by the discontinuation of Medicare 75/25 relief, which was subsidizing patient costs in several areas. QIPT also experienced the withdrawal of Medicare Advantage members due to an agreement with other providers and it was also indirectly impacted by a main healthcare admin company's cyber-security incident which impaired its ability to process and bill claims. That said, overall revenue rose 10% and QIPT says it is still experiencing 'strong trends for respiratory equipment'. The stock took a big hit on the news, and is now down 28% YTD. Cash flow and the balance sheet are still strong. We do not like the momentum here, but its outlook is still OK, and to be fair to the company, most of its issues in the quarter were beyond its control. We would see it as a HOLD after today's decline. (5iResearch)

[lscfa]

Obviously, 5iResearch did not listen to the CC where material info was disclosed.

[ramman1]

Some of the estimates that 5i  noted were kind of minimal , and not a huge worry.  The dis-continuing of the 75/25 relief is a big hit , as it related to several areas of service, in partricular ,the rural areas . --Organic growth of only 6% is a big issue. Yes,maybe some factors effected the number, however with Great Elm in the middle of it's sell/cross sell  growth area

[westcoastlogger]

Canucks rule. Best team and coach I've witnessed in decades here and we will meet the Rangers for the cup. JT Miller will be MVP.

[Moemoney42]

How about an update on you QIPT losses.. this isn't a hockey BB..  :-/

[Moemoney42]

Not only today another 52 week low.. but a 104 week low now..!! And logjam says its a good buy.. LOL..

[Moemoney42]

Heck its actually a 3 year low.. talk about dead money.. or lost money..!! :-0

[westcoastlogger]

Rick Tocchet wins the Jack Adams award for coach of the year and Quinn Hughes wins the Norris for best defenceman.

[gibbonsj]

I totally agree with that summary and for sure we're navigating through rough Waters not of the company's doing but things will settle down and earnings will improve. Despite those conditions the financials were more than good enough to demonstrate a continued trajectory . Sure we missed a bit here and a bit there but that's the way the market goes. The company has long projected that