UpHealth Rises 8.6% on Stellar Q3 Results


UpHealth, Inc. (UPH) has reported stronger-than-expected Q3 results on robust revenue growth. Shares of the company rallied 8.6% in the extended trading session on Wednesday.

Quarterly revenues stood at $49.1 million, up 25% from the last quarter’s pro forma revenue. Also, it surpassed the consensus estimate of $46.4 million. While the Virtual Care Infrastructure segment generated 39% of the total revenues, Services accounted for 37% of the total revenues.

The company reported earnings per share (EPS) of $0.28, which compares favorably with a loss of $0.01 per share in the same quarter last year. Also, earnings surpassed the Street’s estimate of a loss of $0.05 per share. (See UpHealth stock chart on TipRanks)

Adjusted EBITDA for the third quarter of $5 million, reflected substantial increase from $2.3 million last quarter on a pro forma basis.

The CEO of UpHealth, Dr. Ramesh Balakrishnan, said, “Our first full quarter as a public company marks tremendous growth and success, as we boldly push the integration of our operations and consistently pursue our transformation to a global, leading, digital healthcare, public company. The results convincingly demonstrate the clear value and differentiators of the UpHealth model as well as the dedication of our people and support of our investors, clients, and partners.”

Guidance

For 2021, UpHealth reiterated its financial projections of $180 million and adjusted EBITDA of $16 million to $20 million before public company expenses.

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Price Target

Based on 2 Unanimous Buys, the stock has a Moderate Buy consensus rating. The average UpHealth price target of $9 implies 268.9% upside potential from current levels. Shares have gained 41.9% over the past month.

Bullish Investor Sentiment

TipRanks’ Stock Investors tool shows that investors currently have a Very Positive stance on UpHealth, with 40.3% of investors on TipRanks increasing their exposure to UPH stock over the past 30 days.

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