Earnings Preview: MultiPlan

MultiPlan MPLN is preparing to release its quarterly earnings on Tuesday, 2024-11-05. Here's a brief overview of what investors should keep in mind before the announcement.

Analysts expect MultiPlan to report an earnings per share (EPS) of $-13.71.

The announcement from MultiPlan is eagerly anticipated, with investors seeking news of surpassing estimates and favorable guidance for the next quarter.

It's worth noting for new investors that guidance can be a key determinant of stock price movements.

Historical Earnings Performance

In the previous earnings release, the company beat EPS by $1.20, leading to a 4.86% drop in the share price the following trading session.

Here's a look at MultiPlan's past performance and the resulting price change:

Performance of MultiPlan Shares

Shares of MultiPlan were trading at $9.16 as of November 01. Over the last 52-week period, shares are down 84.95%. Given that these returns are generally negative, long-term shareholders are likely bearish going into this earnings release.

Analyst Insights on MultiPlan

Understanding market sentiments and expectations within the industry is crucial for investors. This analysis delves into the latest insights on MultiPlan.

With 2 analyst ratings, MultiPlan has a consensus rating of Neutral. The average one-year price target is $5.5, indicating a potential 39.96% downside.

Comparing Ratings with Competitors

The following analysis focuses on the analyst ratings and average 1-year price targets of American Well, TruBridge and OptimizeRx, three prominent industry players, providing insights into their relative performance expectations and market positioning.

• Analysts currently favor an Neutral trajectory for American Well, with an average 1-year price target of $15.0, suggesting a potential 63.76% upside.
• TruBridge received a Outperform consensus from analysts, with an average 1-year price target of $13.4, implying a potential 46.29% upside.
• For OptimizeRx, analysts project an Neutral trajectory, with an average 1-year price target of $12.5, indicating a potential 36.46% upside.

Peers Comparative Analysis Summary

The peer analysis summary offers a detailed examination of key metrics for American Well, TruBridge and OptimizeRx, providing valuable insights into their respective standings within the industry and their market positions and comparative performance.

Key Takeaway:

MultiPlan ranks at the bottom for Revenue Growth with a negative rate, while one peer shows a slight positive growth. MultiPlan also ranks lowest for Gross Profit, with peers having higher figures. In terms of Return on Equity, MultiPlan is at the bottom with a negative percentage, while one peer has a positive return. Overall, MultiPlan lags behind its peers in key financial metrics.

Get to Know MultiPlan Better

MultiPlan Corp is a provider of data analytics and technology-enabled solutions designed to bring affordability, efficiency, and fairness to the U.S. healthcare industry. The company interprets clients' needs and customizes solutions that combine its payment integrity, network-based, and analytics-based services. The Company's focus is being a value-added provider of data analytics and technology-enabled end-to-end cost management, payment and revenue integrity solutions to the U.S. healthcare industry.

MultiPlan's Economic Impact: An Analysis

Market Capitalization: With restricted market capitalization, the company is positioned below industry averages. This reflects a smaller scale relative to peers.

Decline in Revenue: Over the 3 months period, MultiPlan faced challenges, resulting in a decline of approximately -1.9% in revenue growth as of 30 June, 2024. This signifies a reduction in the company's top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Health Care sector.

Net Margin: The company's net margin is below industry benchmarks, signaling potential difficulties in achieving strong profitability. With a net margin of -247.02%, the company may need to address challenges in effective cost control.

Return on Equity (ROE): MultiPlan's ROE is below industry standards, pointing towards difficulties in efficiently utilizing equity capital. With an ROE of -65.03%, the company may encounter challenges in delivering satisfactory returns for shareholders.

Return on Assets (ROA): MultiPlan's ROA falls below industry averages, indicating challenges in efficiently utilizing assets. With an ROA of -9.53%, the company may face hurdles in generating optimal returns from its assets.

Debt Management: MultiPlan's debt-to-equity ratio stands notably higher than the industry average, reaching 7.53. This indicates a heavier reliance on borrowed funds, raising concerns about financial leverage.

To track all earnings releases for MultiPlan visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.