InnovAge (NASDAQ:INNV) Announces Quarterly Earnings Results

InnovAge (NASDAQ:INNV) announced its earnings results on Tuesday. The company reported $0.14 earnings per share for the quarter, topping the consensus estimate of $0.09 by $0.05, FiscalAI reports. InnovAge had a net margin of 0.88% and a return on equity of 3.68%. The company had revenue of $264.76 million during the quarter, compared to analyst estimates of $257.23 million.

Here are the key takeaways from InnovAge’s conference call:

• Strong first-quarter performance: Revenue rose 12.1% to $264.8 million, Adjusted EBITDA increased more than 75% to $31.3 million, and ending census grew 6.7% to 8,420 participants. Adjusted EBITDA margin expanded to 11.8% from 7.5% year over year.
• External provider cost per participant declined, helped by lower assisted-living, permanent nursing-facility, and pharmacy expenses. Management attributed the improvement to stronger provider engagement, in-house specialist care, after-hours nursing, and continued pharmacy operational improvements.
• Management reaffirmed fiscal 2027 guidance, including revenue of $1.05 billion-$1.085 billion and Adjusted EBITDA of $105 million-$115 million. The company expects census to reach 8,625-8,850 participants by year-end.
• InnovAge expects normal PACE seasonality to moderate results after the unusually strong first quarter, including higher medical costs, risk-score decay, annual labor-cost increases, and enrollment pressure during Medicare open enrollment.
• The transition to the V28 Medicare risk-adjustment model remains a reimbursement risk as the blend shifts to 50% V28 in January. Management expects Medicare rates to rise only 1.5%-2% and noted that California Medicaid rates have not yet been finalized, although both factors are reflected in guidance.

InnovAge Stock Down 7.2%

Shares of InnovAge stock traded down $0.70 during trading hours on Thursday, reaching $9.09. 212,184 shares of the company were exchanged, compared to its average volume of 384,097. The firm has a market cap of $1.24 billion, a PE ratio of 151.25 and a beta of 0.16. The company has a debt-to-equity ratio of 0.23, a quick ratio of 1.05 and a current ratio of 1.05. InnovAge has a 1 year low of $4.17 and a 1 year high of $12.64. The stock’s fifty day moving average is $9.73 and its 200 day moving average is $9.09.

Wall Street Analyst Weigh In

Several equities research analysts recently issued reports on INNV shares. Weiss Ratings reiterated a “sell (d-)” rating on shares of InnovAge in a report on Thursday, August 13th. Wall Street Zen cut InnovAge from a “strong-buy” rating to a “buy” rating in a report on Sunday, October 18th. Finally, KeyCorp lifted their target price on InnovAge from $13.00 to $14.00 and gave the company an “overweight” rating in a research report on Wednesday, September 9th. One research analyst has rated the stock with a Buy rating, one has issued a Hold rating and two have given a Sell rating to the company’s stock. According to data from MarketBeat, InnovAge presently has an average rating of “Reduce” and a consensus target price of $10.50.

Insider Buying and Selling

In other InnovAge news, major shareholder Aggregator Lp Ignite sold 10,000,000 shares of the stock in a transaction dated Thursday, September 24th. The stock was sold at an average price of $9.25, for a total value of $92,500,000.00. Following the sale, the insider owned 102,576,555 shares of the company’s stock, valued at $948,833,133.75. This trade represents a 8.88% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, major shareholder Carson Anderson & Stow Welsh sold 1,500,000 shares of InnovAge stock in a transaction dated Wednesday, October 21st. The shares were sold at an average price of $9.25, for a total value of $13,875,000.00. Following the completion of the transaction, the insider owned 101,076,555 shares of the company’s stock, valued at $934,958,133.75. The trade was a 1.46% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold 13,027,216 shares of company stock valued at $120,489,535 in the last three months. 1.00% of the stock is owned by corporate insiders.

InnovAge Company Profile

InnovAge (NASDAQ: INNV) is a healthcare services company that provides comprehensive care for older adults through the Program of All-Inclusive Care for the Elderly (PACE). Its model is designed to help eligible seniors remain living in their homes and communities rather than moving to nursing facilities, while coordinating medical, social, and supportive services through an integrated care program.

InnovAge’s services may include primary and specialty medical care, nursing, physical and occupational therapy, behavioral health, pharmacy services, dentistry, vision care, meals, transportation, social services, and in-home support.