As the Q3 earnings season wraps, let’s dig into this quarter’s best and worst performers in the healthcare technology for providers industry, including Astrana Health (NASDAQ: ASTH) and its peers.

The healthcare technology sector provides software and data analytics to help hospitals and clinics streamline operations and improve patient outcomes, often through value-based care models. Future growth is expected as providers prioritize digital transformation to manage rising costs and patient demands. Tailwinds include the adoption of AI-driven tools and government incentives for digitization. There challenges as well, including long sales cycles and slow adoption by providers, who may be resistance to change. Tightening hospital budgets and cybersecurity threats are additional risks that could slow adoption.

The 4 healthcare technology for providers stocks we track reported a satisfactory Q3. As a group, revenues beat analysts’ consensus estimates by 6.2% while next quarter’s revenue guidance was 0.7% below.

While some healthcare technology for providers stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 4.9% since the latest earnings results.

Weakest Q3: Astrana Health (NASDAQ: ASTH)

Formerly known as Apollo Medical Holdings until early 2024, Astrana Health (NASDAQ: ASTH) operates a technology-powered healthcare platform that enables physicians to deliver coordinated care while successfully participating in value-based payment models.

Astrana Health reported revenues of $956 million, up 99.7% year on year. This print exceeded analysts’ expectations by 0.6%. Despite the top-line beat, it was still a softer quarter for the company with a significant miss of analysts’ EPS estimates and full-year revenue guidance missing analysts’ expectations.

"Astrana delivered solid third quarter results and demonstrated strong momentum in our first quarter of combined operations with Prospect Health," said Brandon Sim, President and Chief Executive Officer.

Astrana Health achieved the fastest revenue growth but had the weakest performance against analyst estimates of the whole group. Still, the market seems discontent with the results. The stock is down 6.4% since reporting and currently trades at $22.35.

Is now the time to buy Astrana Health? Access our full analysis of the earnings results here, it’s free.

Best Q3: Privia Health (NASDAQ: PRVA)

Operating in 13 states and the District of Columbia with over 4,300 providers serving more than 4.8 million patients, Privia Health (NASDAQ: PRVA) is a technology-driven company that helps physicians optimize their practices, improve patient experiences, and transition to value-based care models.

Privia Health reported revenues of $580.4 million, up 32.5% year on year, outperforming analysts’ expectations by 16.6%. The business had a stunning quarter with a beat of analysts’ EPS estimates and an impressive beat of analysts’ revenue estimates.

Privia Health delivered the biggest analyst estimates beat among its peers. Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 6.4% since reporting. It currently trades at $23.42.

Is now the time to buy Privia Health? Access our full analysis of the earnings results here, it’s free.

Evolent Health (NYSE: EVH)

Founded in 2011 to transform how healthcare is delivered to patients with complex needs, Evolent Health (NYSE: EVH) provides specialty care management services and technology solutions that help health plans and providers deliver better care for patients with complex conditions.

Evolent Health reported revenues of $479.5 million, down 22.8% year on year, exceeding analysts’ expectations by 2.6%. Still, it was a slower quarter as it posted a significant miss of analysts’ EPS estimates and EBITDA guidance for next quarter missing analysts’ expectations significantly.

Evolent Health delivered the highest full-year guidance raise but had the slowest revenue growth in the group. As expected, the stock is down 43.9% since the results and currently trades at $3.36.

Read our full analysis of Evolent Health’s results here.

Omnicell (NASDAQ: OMCL)

Driven by the vision of an "Autonomous Pharmacy" with zero medication errors, Omnicell (NASDAQ: OMCL) provides medication management automation and adherence tools that help healthcare systems and pharmacies reduce errors and improve efficiency.

Omnicell reported revenues of $310.6 million, up 10% year on year. This print topped analysts’ expectations by 5%. Overall, it was a very strong quarter as it also produced a beat of analysts’ EPS estimates and an impressive beat of analysts’ revenue estimates.

The stock is up 63.9% since reporting and currently trades at $48.47.

Read our full, actionable report on Omnicell here, it’s free.

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