ModivCare Full Year 2024 Earnings: EPS Misses Expectations
ModivCare's full year 2024 earnings missed analyst estimates by a significant margin, with the company reporting a net loss of US$201.3m, narrower than the previous year's loss of US$214.9m. Revenue grew 1.3% to US$2.79b, driven primarily by its NEMT segment, but the impact on earnings was substantial due to high cost of sales. The company's shares have declined 17% from a week ago.
- ModivCare's financial performance highlights the challenges faced by companies in the healthcare industry, particularly those providing non-emergency medical transportation services, where margins can be thin.
- What strategies will ModivCare employ to improve its operational efficiency and reduce costs in order to achieve its forecasted growth in revenue over the next three years?