TSX:WELL - Post Discussion
Post by
speedy99 on Mar 22, 2023 9:56am
tip ranks - strong buy - average price target $9.32
WELL Health Stock (TSE:WELL) Soars on Strong Q4-2022 Earnings Results
Story Highlights WELL Health’s earnings report and strong 2023 guidance were enough to send the stock higher today. WELL’s earnings matched expectations, while revenue came in higher than expected.
WELL Health Technologies (TSE:WELL), a healthcare services provider, recently reported record Q4 results (along with full-year 2022 results) that beat revenue expectations and matched earnings-per-share (EPS) estimates. The company also provided strong guidance for 2023. Mr.Market clearly likes the earnings report, as WELL stock is soaring.
Q4-2022 Results
In Q4 2022, WELL Health’s revenue rose to C$156.5 million (a 35% year-over-year increase), which beat expectations of C$153.57 million. Notably, its Virtual Services division saw growth of 74%, representing about 35% of the company’s revenue.
Also, WELL’s adjusted EPS came in at C$0.05, in line with the C$0.05 consensus estimate and last year’s figure of C$0.05.
Additionally, WELL Health’s adjusted EBITDA rose 6% year-over-year to C$27.2 million, but its adjusted gross profit margin decreased by 360 basis points to 51.3%.
Full-Year Results and 2023 Guidance
Moving on to full-year results, revenue grew by 88% to C$569 million, adjusted earnings per share were C$0.24 compared to C$0.09 in 2021, and adjusted EBITDA rose 73% to C$104.6 million. Moreover, cash flow from operations was C$76.55 million — a significant increase compared to C$22.27 million in the same period last year. Also, adjusted free cash flow was C$48.8 million.
Importantly, the company’s CFO mentioned that “in fiscal 2022, 96% of WELL’s $569.1M in revenues were either recurring or highly re-occurring in nature.”
Lastly, the company provided full-year 2023 guidance. Revenue is expected to land between C$665 million and C$685 million. Meanwhile, adjusted EBITDA is forecast to grow by 10%.
Is WELL Health Stock a Buy, According to Analysts?
Analysts are unanimously bullish on WELL stock, as it has three unanimous Buy ratings, making it a “Strong Buy.” The average WELL Health stock price target of C$9.32 implies about 104.8% upside potential.
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