WELL Health Technologies (TSE:WELL), a healthcare services provider, recently reported record Q4 results (along with full-year 2022 results) that beat revenue expectations and matched earnings-per-share (EPS) estimates. The company also provided strong guidance for 2023. Mr.Market clearly likes the earnings report, as WELL stock is soaring.
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Q4-2022 Results
In Q4 2022, WELL Health’s revenue rose to C$156.5 million (a 35% year-over-year increase), which beat expectations of C$153.57 million. Notably, its Virtual Services division saw growth of 74%, representing about 35% of the company’s revenue.
Also, WELL’s adjusted EPS came in at C$0.05, in line with the C$0.05 consensus estimate and last year’s figure of C$0.05.
Additionally, WELL Health’s adjusted EBITDA rose 6% year-over-year to C$27.2 million, but its adjusted gross profit margin decreased by 360 basis points to 51.3%.
Full-Year Results and 2023 Guidance
Moving on to full-year results, revenue grew by 88% to C$569 million, adjusted earnings per share were C$0.24 compared to C$0.09 in 2021, and adjusted EBITDA rose 73% to C$104.6 million. Moreover, cash flow from operations was C$76.55 million — a significant increase compared to C$22.27 million in the same period last year. Also, adjusted free cash flow was C$48.8 million.
Importantly, the company’s CFO mentioned that “in fiscal 2022, 96% of WELL’s $569.1M in revenues were either recurring or highly re-occurring in nature.”
Lastly, the company provided full-year 2023 guidance. Revenue is expected to land between C$665 million and C$685 million. Meanwhile, adjusted EBITDA is forecast to grow by 10%.
Is WELL Health Stock a Buy, According to Analysts?
Analysts are unanimously bullish on WELL stock, as it has three unanimous Buy ratings, making it a “Strong Buy.” The average WELL Health stock price target of C$9.32 implies about 104.8% upside potential.
