CAREMAX Reports Third Quarter Earnings Results for FY2023
November 20, 2023
🌥️Earnings Overview
On November 9 2023, CAREMAX ($NASDAQ:CMAX) reported its earnings results for the third quarter of FY2023, which ended on September 30 2023. The company generated a total revenue of USD 201.8 million, signifying a year-over-year growth of 28.0%. Net income was reported at USD -103.1 million, compared to a loss of USD -22.0 million in the same quarter of the previous year.
Price History
The market response to the news was overwhelmingly negative, as CAREMAX stock opened at $1.8 and closed at $1.5, a plunge of 14.1% from its previous closing price of $1.7. Analysts attributed the decline in stock price to the fact that CAREMAX’s earnings report fell short of expectations. This caused investors to lose confidence in the company and sell their shares. The third quarter earnings report showed that CAREMAX’s net income and revenue both decreased compared to the same time last year. Despite the poor performance of CAREMAX’s stock on Thursday, there are signs that the company could turn things around in the future. CAREMAX has announced plans to invest in new technology and digital initiatives that will enable it to become more competitive in the marketplace.
Additionally, the company is also in the process of launching a new product line that is expected to increase its revenues significantly over the next few years. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Caremax. CAREMAX_Reports_Third_Quarter_Earnings_Results_for_FY2023″>More…
| Total Revenues | Net Income | Net Margin |
| 763.53 | -207.15 | -9.1% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Caremax. CAREMAX_Reports_Third_Quarter_Earnings_Results_for_FY2023″>More…
| Operations | Investing | Financing |
| -90.85 | -65.54 | 135.34 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Caremax. CAREMAX_Reports_Third_Quarter_Earnings_Results_for_FY2023″>More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 1.06k | 533.5 | 4.68 |
Key Ratios Snapshot
Some of the financial key ratios for Caremax are shown below. CAREMAX_Reports_Third_Quarter_Earnings_Results_for_FY2023″>More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| – | – | -23.6% |
| FCF Margin | ROE | ROA |
| -13.3% | -19.6% | -10.6% |
Analysis
GoodWhale has conducted an analysis of CAREMAX‘s financials and, based on the Star Chart, CAREMAX has an intermediate health score of 5/10 when it comes to its cashflows and debt. We believe that CAREMAX might be able to safely ride out any crisis without the risk of bankruptcy. While CAREMAX is strong in growth, it is weak in terms of asset, dividend, and profitability. Hence, we classify CAREMAX as a ‘cheetah’, a type of company which achieves high revenue or earnings growth but is considered less stable due to lower profitability. Given its financials, we believe that CAREMAX may be an attractive investment opportunity to investors looking for high-growth but with higher risk. These may include venture capitalists, angel investors, and private equity funds looking to make the most of the potential returns. More…
Peers
Its competitors include ORHub Inc, CloudMD Software & Services Inc, and SOC Telemed Inc.
– ORHub Inc ($OTCPK:ORHB)
HubSpot, Inc. is an American technology company founded in 2006. The company provides software for inbound marketing, sales, and customer service. It offers a platform for businesses to attract visitors, convert leads, close customers, and delight customers after the sale. The company was founded by Brian Halligan and Dharmesh Shah, who are also the co-founders of the software development startup Akamai Technologies.
– CloudMD Software & Services Inc ($TSXV:DOC)
CloudMD Software & Services Inc is a healthcare technology company that provides software as a service solutions to medical clinics and healthcare practitioners. The company has a market cap of 60.18M as of 2022 and a Return on Equity of -16.94%. The company’s products and services include electronic medical records, practice management software, telemedicine, and medical billing services.
Summary
CAREMAX reported its earnings results for the third quarter of FY2023 on November 9th. Total revenue grew 28.0%, but net income decreased, from a loss of USD -22.0 million in the same period of the previous year to a loss of USD -103.1 million. The stock price reacted negatively to the news, dropping on the same day.
For investors considering investing in CAREMAX, this may be a sign that the company is struggling to turn a profit despite revenue growth. It is important to consider the company’s long-term plan and financial health before making any investment decisions.
Related Posts
Recent Posts
