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NRC Health Q3 profit rises on recurring contract growth

By Reuters News


Overview

  • U.S. healthcare experience solutions provider's Q3 revenue rose 11% yr/yr

  • Q3 adjusted EPS was $0.21

  • Company cites multi-year renewals and new customer go-live as supporting revenue growth


Outlook

  • Company expects expanding contract base to drive greater profitability and free cash flow over time

  • Company highlights durability of recurring-revenue base with recent multi-year customer renewals


Result Drivers

  • CUSTOMER GO-LIVE AND RENEWALS - Co said revenue growth was supported by a large customer going live and multi-year renewals with existing customers

  • EXPANDING CONTRACT BASE - Co attributed profitability improvements to expanding contract base and operating leverage


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Revenue

Beat

$38.40 mln

$35.80 mln (1 Analyst)

Q3 EPS

$0.21

Q3 Net Income

$4.70 mln


Analyst Coverage

  • The one available analyst rating on the shares is "buy"

  • The average consensus recommendation for the advertising & marketing peer group is "buy"

  • Wall Street's median 12-month price target for NRC Health is $26.00, about 15.8% above its October 26 closing price of $22.45

  • The stock recently traded at 22 times the next 12-month earnings vs. a P/E of 23 three months ago


Reuters Recommended Reads

  • Oct 27 - HCA Healthcare Q3 revenue rises on admissions, emergency room visits growth

  • Oct 27 - Centene Q3 revenue tops estimates on Medicare growth

  • Oct 27 - Centene lifts 2026 profit forecast, sees earnings growth continuing in 2027


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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