NRC Health Q3 profit rises on recurring contract growth

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

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

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(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.)