Home medical services provider Viemed climbs after record earnings

Shares of Viemed Healthcare, a company that provides in-home respiratory support and has a market capitalization of $278.7 million, rose nearly 10% on Thursday, August 8. The day before, the company reported upbeat earnings for the second quarter of 2024: net revenue had its best quarterly performance ever, having risen 27% year-over-year, while adjusted EBITDA was up 31%.

Details

On Thursday, Viemed stock gained 9.95% on the Nasdaq to $7.18 per share. However, it fell 2.09% in after-hours trading. Viemed is now off 8.5% since the beginning of the year and down about 16.0% over the last 12 months.

On Wednesday, the company announced that its net revenue for the second quarter of 2024 came in at a record $55 million, up 27% versus the previous year, while adjusted EBITDA rose 31% year-over-year to $12.8 million, though net profit slid to $1.5 million from $2.3 million in the same period last year.

Viemed guides for revenue of about $56.5-57.7 million in the third quarter of 2024. That would mark an improvement on the $49.4 million posted in the year-before period.

About Viemed Healthcare

Viemed provides in-home medical equipment and post-acute respiratory healthcare services in the U.S. Home medical services, which allow patients to receive care in the comfort of their homes, surrounded by their families, are a growing trend, as the company noted at the spring LD Micro conference in New York. They also reduce costs for patients, insurance companies, and governments.

Viemed reported that its ventilator patient count rose 4.4% quarter-over-quarter in the second quarter of 2024, reaching a new record of 10,905 patients. Demand for Viemed’s core services is growing, while the addressable market remains “largely underserved,” CEO Casey Hoyt said in the earnings announcement. For instance, there are about 25 million people diagnosed with chronic obstructive pulmonary disease (COPD) in the U.S., with 1.25 million of them in need of respiratory support, the company pointed out at LD Micro.

What analysts say

According to MarketWatch, three analysts cover Viemed. They all recommend buying the stock, with an average target price of $12.27 per share, indicating upside of over 70%.