Overview

* CareRx ( CHHHF ) Q2 revenue CAD 91.4 mln, largely in-line with analyst expectations, per LSEG data

* Adjusted EBITDA for Q2 CAD 8.0 mln, also in-line with analyst estimates, per LSEG data

* Net income for Q2 CAD 0.6 mln, improved from net loss in prior year

Outlook

* CareRx ( CHHHF ) anticipates growth from new beds and operational discipline

* Company expects efficient scaling while maintaining quality care

Result Drivers

* BED GROWTH - Increase in average number of beds serviced drove revenue growth compared to the previous quarter

* PHARMACEUTICAL MIX - Revenue decline compared to the previous year due to changes in branded and generic pharmaceuticals dispensed

* COST SAVINGS - Adjusted EBITDA increase attributed to efficiencies and cost-saving initiatives

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Meet C$91.39 C$91.90

Revenue mln mln (4

Analysts

)

Q2 Net C$561,00

Income 0

Q2 Meet C$8 mln C$8.10

Adjusted mln (4

EBITDA Analysts

)

Q2 8.8%

Adjusted

EBITDA

Margin

Q2 C$6.83

EBITDA mln

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the drug retailers peer group is "buy"

* Wall Street's median 12-month price target for CareRx Corp ( CHHHF ) is C$3.50, about 18.6% above its July 29 closing price of C$2.85

* The stock recently traded at 16 times the next 12-month earnings vs. a P/E of 22 three months ago

Press Release:

(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.)