Canada's CareRx Q2 revenue rises, slightly misses estimates

CareRx

29/07/2026 23:31

Overview
Canada pharmacy services provider's Q2 revenue rose yr/yr, slightly missing analyst expectations
Adjusted EBITDA for Q2 was flat yr/yr and missed analyst expectations
Company secured new national contract to add about 3,000 beds in Q3
CareRx declares a quarterly dividend of C$0.022 per share, up 10% from prior quarter

Outlook
CareRx expects to service an additional 3,000 retirement residents starting in Q3 2026
Company says onboarding of new retirement residences will begin in Q3 2026

Result Drivers
BEDS SERVICED AND COST SAVINGS - Co said increase in beds serviced and cost savings initiatives supported results, but were offset by funding changes for unoccupied ward beds in Ontario

Company press release: ID:nNFC97kCLC

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Slight Miss*
C$93.57 mln
C$94.05 mln (4 Analysts)
Q2 Net Income
 
C$363,000
 
Q2 Adjusted EBITDA
Miss
C$8.02 mln
C$8.40 mln (4 Analysts)
Q2 Adjusted EBITDA Margin
 
8.60%
 
Q2 EBITDA
 
C$6.51 mln
 
*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 7 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"
The average consensus recommendation for the drug retailers peer group is "buy"
Wall Street's median 12-month price target for CareRx Corp is C$5.00, about 46.2% above its July 29 closing price of C$3.42
The stock recently traded at 19 times the next 12-month earnings vs. a P/E of 18 three months ago

Reuters Recommended Reads
July 29 - Netherlands' Redcare Pharmacy Q2 revenue rises; reaffirms 2026 outlook
July 29 - Canada's Bausch Health Q2 results beat estimates; raises 2026 outlook
July 27 - Ensign Group Q2 profit beats on higher occupancy rates

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)