Agiliti's earnings slipped in comparison to the first quarter of 2022 but the Eden Prairie-based company's results were better than analyst expectations and give officials confidence in the rest of the year.
The provider of medical equipment management and servicing solutions to hospitals and other health care centers earned $3 million, or 2 cents a share, in its first quarter ended March 31.
That was down from $19.9 million, or 14 cents a share, in the first quarter of 2022. Adjusted earnings per share were 20 cents, down 31% from the same quarter last year but better than consensus estimate of 16 cents from six analysts following Agiliti.
Revenue also beat analyst expectations, rising 1.9% to $300 million as the company was lapping results from the same period last year that included favorable benefits from COVID-19 orders and a reworked Health and Human Services contract to maintain the government's emergency supply of critical medical equipment.
Agiliti also benefited from some larger contracts signed last year that have started to hit the company's bottom line.
"Our customers are navigating a broad set of economic challenges, and we are proud to bring solutions that address many of the financial, clinical and operational constraints facing our healthcare system today," said Tom Boehning in the company's news release. Boehning succeeded Tom Leonard as the company's chief executive on March 10.
In the company's earnings call, Boehning noted that the conversations with customers post-pandemic have started to shift from more short-term transactional deals to longer term strategic ones.
"They realize now the importance of medical device management across their enterprise," Boehning said on the call.
Post-pandemic, some of the challenges that health care systems face remain, mainly constrained capital commitments and labor shortages. Trends that continue to allow Agiliti to provide customers with rental medical equipment when and where customers need it and maintenance and repair services that allow health care systems to save money by contracting out those services.
The company maintained its guidance for the remainder of the year and still expect 2023 full-year revenue in the range of $1.16 to $1.19 billion, and adjusted EPS in the range of 65 to 70 cents a share.
Agiliti released their quarterly results after the market closed on Tuesday. For the day shares closed at $16.72, down less than 1% but were trading almost 2% higher in afterhours trading.
