ModivCare Analysts Cut Their Forecasts After Q4 Results

ModivCare Inc. MODV posted upbeat earnings for its fourth quarter but issued weak sales forecast for the first quarter.

ModivCare posted adjusted earnings of $1.29 per share, beating market estimates of $1.28 per share. The company’s quarterly sales came in at $702.83 million versus expectations of $696.72 million, according to data from Benzinga Pro.

"We delivered solid financial results for 2023 with revenue and adjusted EBITDA meeting our guidance. Our NEMT revenue grew 9% during the fourth quarter driven by a 13% increase in trips, while our personal care and remote patient monitoring segments continued to grow nicely," stated L. Heath Sampson, President and CEO. "Our transformation has led to substantial operational improvement, while cultivating a results-oriented yet compassionate culture and sharpening our strategic focus. This uniquely positions us to make a meaningful impact on our clients and their members by addressing the social determinants of health."

ModivCare said it sees first-quarter revenue of $650 million to $700 million, versus market estimates of $702.031 million. The company expects FY24 revenue of $2.7 billion to $2.9 billion, versus expectations of $2.897 billion.

ModivCare shares fell 2.8% to close at $43.87 on Thursday.

These analysts made changes to their price targets on ModivCare after the company reported quarterly results.

• Deutsche Bank cut the price target on ModivCare from $60 to $40. Deutsche Bank analyst Pito Chickering downgraded the stock from Buy to Hold.
• Jefferies slashed the price target on ModivCare from $60 to $39. Jefferies analyst Brian Tanquilut downgraded the stock from Buy to Hold.

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