CareMax, Inc. (CMAX) Reports Second-Quarter Loss, Beating Revenue Estimates

CareMax, Inc. (CMAX) reported quarterly loss of $0.15 per share versus the Zacks Consensus Estimate of a loss of $0.06. This compares to a loss of $0.11 per share a year ago. These figures are adjusted for one-time items.

This quarterly report represents an earnings surprise of -150%. A quarter ago, the company was expected to post a loss of $0.15 per share when in fact it posted a loss of $0.18, representing a surprise of -20%.

The company has failed to beat consensus earnings per share estimates over the past four quarters.

CareMax, Inc., which belongs to the Zacks Technology Services industry, posted revenues of $224.44 million for the quarter ended June 2023, surpassing the Zacks Consensus Estimate by 18.83%. This compares to the prior-year revenues of $172.28 million. The company has surpassed the consensus revenue estimate three times over the last four quarters.

The sustainability of current share price movements based on recently released data and future earnings expectations will depend primarily on management’s commentary following the earnings conference call.

Year to date, CareMax, Inc. shares have lost about 24.7%, while the S&P 500 has gained 17.2%.

What’s next for CareMax, Inc.?

While CareMax, Inc. has underperformed the market this year, the question that comes to investors’ minds is: what’s next for the stock?

There are no easy answers to this key question, but one reliable indicator that can help investors address this is the company’s earnings outlook. This includes not only the current consensus earnings expectations for the coming quarter(s), but also how those expectations have changed recently.

Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Ahead of this earnings report, the estimate revision trend for CareMax, Inc. is mixed. While the magnitude and direction of estimate revisions could change following the company’s just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. As such, the stock is expected to perform in line with the market in the near term. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the upcoming quarters and current fiscal year change in the coming days. The current consensus EPS estimate is -$0.08 on $186.21 million in revenue for the coming quarter and -$1 on $739.81 million in revenue for the current fiscal year.

Investors should be aware that the outlook for the industry can also have a significant impact on stock performance. In terms of the Zacks Industry Rank, Technology Services currently ranks in the bottom 35% of the 250+ Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

Alithya Group (ALYA), another company in the same sector, is yet to release its results for the quarter ended June 2023. The results are expected to be released on August 10.

The consulting firm is expected to report a quarterly loss of $0.01 per share in its upcoming report, which would represent a year-over-year change of 66.7%. The consensus earnings per share estimate for the quarter remained unchanged over the past 30 days.

Alithya Group’s revenue is expected to reach $104.69 million, up 5.4% compared to the same quarter last year.

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