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Category: Stock Market and Hanger
Date: 15 March 2020 Stock Price: $18.70 We take a look at the 4th quarter earnings report of their 2019 fiscal year of Hanger, a provider of orthotic and prosthetic (O&P) patient case and distributes O&P products and rehabilitative solutions to the broader market
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About Hanger
Built on the legacy of James Edward Hanger, the first amputee of the American Civil War, Hanger, Inc. (NYSE: HNGR) delivers orthotic and prosthetic (O&P) patient care, and distributes O&P products and rehabilitative solutions to the broader market. Hanger's Patient Care segment is the largest owner and operator of O&P patient care clinics with approximately 800 patient care locations nationwide. Through its Products & Services segment, Hanger distributes branded and private label O&P devices, products and components, and provides rehabilitative solutions. With over 150 years of clinical excellence and innovation, Hanger's vision is to lead the orthotic & prosthetic markets by providing superior patient care, outcomes, services and value.
Hanger Clinic: Empowering Human Potential
Overview of Hanger's 4th quarter 2019 earnings report
The data below refers to the latest quarter unless specified otherwise:
- Total Revenue: $300.891 million (up from $284.853 million for the same quarter of the previous year)
- Revenue increased by 5.6% over the last 12 months
- Operating expenses: $260.858 million (up from $248.27 million for the same quarter of the previous year)
- Operating expenses increased by 5.1% over the last 12 months
- Net earnings: $18.750 million (up from $4.463 million for the same quarter of the previous year)
- Diluted earnings per share $0.50 (up from $0.12 for the same quarter of the previous year)
- Diluted number of shares outstanding: 38.415 million (up from 37.721 million for the same quarter of the previous year)
- Cash and cash equivalents $74.419 million
- Cash and cash equivalents per share: $1.93
- Cash and cash equivalents makes up 10.4% of Hanger's current market capital
- Cash and cash equivalents makes up 8.83% of Hanger's total assets
- Inventories: $68.284 million
- Inventories makes up 9.4% of Hanger's total assets
- Accounts receivable: $159.359 million
- Accounts receivable makes up 18.9% of Hanger's total assets
- Cash generated from operations (for the 2019 fiscal year): $58.846million
- Cash generated from operations per share (for the 2019 fiscal year): $1.53
Hanger's management commentary on their 4th quarter 2019 earnings report
AUSTIN, Texas, March 11, 2020 - Hanger, Inc. (NYSE: HNGR), a leading provider of orthotic and prosthetic (O&P) patient care services and solutions, today announced its financial results for the fourth quarter and year ended December 31, 2019.
Vinit Asar, President and Chief Executive Officer of Hanger, Inc., stated, "I'm pleased with our strong finish to the year. We accomplished the key operating and financial objectives that we established at the start of 2019. Our patient care segment achieved same clinic revenue growth of 2.1 percent for the year through growth in both our prosthetics and orthotics portfolios. I believe these results have demonstrated the benefits of our strategy to elevate the value of our clinical care through a focus on patient outcomes and services, positioning us for continued momentum in 2020."
Vinit Asar, President and Chief Executive Officer of Hanger, Inc., stated, "I'm pleased with our strong finish to the year. We accomplished the key operating and financial objectives that we established at the start of 2019. Our patient care segment achieved same clinic revenue growth of 2.1 percent for the year through growth in both our prosthetics and orthotics portfolios. I believe these results have demonstrated the benefits of our strategy to elevate the value of our clinical care through a focus on patient outcomes and services, positioning us for continued momentum in 2020."
2020 Outlook
The Company currently anticipates 2020 net revenue in a range between $1.125 billion and $1.155 billion, and Adjusted EBITDA in a range between $129.0 million and $134.0 million. It is expected that revenue and earnings growth will primarily be driven by continued same clinic growth and margin expansion in its Patient Care segment. Products & Services segment revenue is anticipated to decline modestly due to the discontinuance of the distribution of some low-margin orthotics products to podiatrists. The Company's outlook for 2020 includes approximately $27 million in revenue relating to the full year of contribution of acquisitions previously completed in 2019 and acquisitions having signed definitive agreements as of March 5, 2020.
The Company currently anticipates 2020 net revenue in a range between $1.125 billion and $1.155 billion, and Adjusted EBITDA in a range between $129.0 million and $134.0 million. It is expected that revenue and earnings growth will primarily be driven by continued same clinic growth and margin expansion in its Patient Care segment. Products & Services segment revenue is anticipated to decline modestly due to the discontinuance of the distribution of some low-margin orthotics products to podiatrists. The Company's outlook for 2020 includes approximately $27 million in revenue relating to the full year of contribution of acquisitions previously completed in 2019 and acquisitions having signed definitive agreements as of March 5, 2020.
Hanger Inc (NYSE: HNGR) stock price history
The image below, obtained from Google shows the stock price history of Hanger over the last 5 years. And its been a pretty average time for Hanger stockholders. 5 years ago the stock of Hanger was trading at around $26.50 a stock and its currently trading at $18.70. That's a loss of -% suffered by Hanger stockholders over the last 5 years.
The stock of Hanger is trading at a lot closer to its 52 week low of $15.50 than it is to its 52 week high of $28.16 which to us is a clear indication that the short term sentiment and momentum of Hanger's stock is very negative at this point in ti,me, as it is with most stocks right now as the fears surrounding the Coronavirus sent markets into free fall in recent weeks. Read more about the biggest sell off in world markets since 1987.
The stock of Hanger is trading at a lot closer to its 52 week low of $15.50 than it is to its 52 week high of $28.16 which to us is a clear indication that the short term sentiment and momentum of Hanger's stock is very negative at this point in ti,me, as it is with most stocks right now as the fears surrounding the Coronavirus sent markets into free fall in recent weeks. Read more about the biggest sell off in world markets since 1987.
Hanger Inc (NYSE: HNGR) stock price history over the last 5 years
Recent coverage of Hanger
The extract below covers the latest regarding Hanger as obtained from Yahoo Finance.
There's been a notable change in appetite for Hanger, Inc. (NYSE:HNGR) shares in the week since its annual report, with the stock down 15% to US$18.60. It looks like a credible result overall - although revenues of US$1.1b were in line with what analysts predicted, Hanger surprised by delivering a statutory profit of US$0.72 per share, a notable 14% above expectations. Analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. We thought readers would find it interesting to see analysts' latest (statutory) post-earnings forecasts for next year.
Read the full article here
There's been a notable change in appetite for Hanger, Inc. (NYSE:HNGR) shares in the week since its annual report, with the stock down 15% to US$18.60. It looks like a credible result overall - although revenues of US$1.1b were in line with what analysts predicted, Hanger surprised by delivering a statutory profit of US$0.72 per share, a notable 14% above expectations. Analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. We thought readers would find it interesting to see analysts' latest (statutory) post-earnings forecasts for next year.
Read the full article here
A Hanger client standing on a cliff
Hanger Inc. (NYSE: HNGR) latest stock valuation
Based on Hanger's latest earnings report and the outlook provided what do we value the stock of Hanger at? Based on Hanger's earnings report and the outlook provided out valuation model provides a target (full value) price for Hanger Inc at $19.10 a stock (down slightly from our 3rd quarter 2019 earnings valuation of Hanger). We therefore believe the stock of Hanger Inc. is close to fully valued
We usually recommend that long term fundamental or value investors look to enter a stock at least 10% below our target price, which in this case is $19.10. A good entry point into Hanger would therefore be at $17.20 or below. We expect the stock of Hanger to trade in a narrow range around its current price in coming weeks and months.
We usually recommend that long term fundamental or value investors look to enter a stock at least 10% below our target price, which in this case is $19.10. A good entry point into Hanger would therefore be at $17.20 or below. We expect the stock of Hanger to trade in a narrow range around its current price in coming weeks and months.
Next earnings release of Hanger Inc.
It is expected that Hanger Inc's 1st quarter 2020 earnings report will be released towards the middle of June 2020