Long-term care pharmacy CareRx Q3 revenue misses analyst expectations

CareRx

03/11/2025 23:04

Nov 3 (Reuters) -
Overview

CareRx Q3 2025 revenue rose slightly but missed analyst expectations

Adjusted EBITDA for Q3 2025 increased but missed analyst estimates

Company had declared a C$0.02 per share dividend and renewed share buyback program

Outlook

Company did not provide specific guidance for future quarters or full year in its press release

Result Drivers

BED COUNT INCREASE - Average beds serviced increased, contributing to revenue and EBITDA growth

COST SAVINGS - Adjusted EBITDA and margin growth attributed to cost savings initiatives and onboarding of new beds

STRATEGIC INVESTMENTS - Co cites strategic investments in operating platform as contributing to growth

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Miss
C$93.22 mln
C$93.90 mln (3 Analysts)
Q3 Net Income
C$1.55 mln
Q3 Adjusted EBITDA
Miss
C$8.34 mln
C$8.73 mln (3 Analysts)
Q3 Adjusted EBITDA Margin
9%
Q3 EBITDA
C$7.71 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "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$4.25, about 15.5% above its October 31 closing price of C$3.59

The stock recently traded at 19 times the next 12-month earnings vs. a P/E of 16 three months ago

Press Release: ID:nNFCbZdFHv

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(Reporting by Aby Jose Koilparambil in Bengaluru)

((abyjose.koilparambil@thomsonreuters.com; +917483275231;))