Astrana Health, Inc. Delivers Strong Q3 Results Amidst Strategic Acquisitions

Astrana Health, Inc. (NASDAQ: ASTH), a leading provider-centric, technology-powered healthcare company, reported its third quarter 2024 results on November 7, 2024. The company's strong performance was driven by organic and inorganic growth, with total revenue increasing by 37% to $478.7 million. This growth was primarily attributed to a 42% surge in Care Partners revenue, which reached $455.8 million. Despite a 27% decrease in net income attributable to Astrana to $16.1 million, the company's earnings per share diluted (EPS - diluted) fell by 30% to $0.33, and adjusted EBITDA decreased by 13% to $45.2 million.

Astrana's impressive revenue growth can be attributed to its strategic acquisitions, including Collaborative Health Systems, LLC (CHS), Golden Triangle Physician Alliance, and Heritage Physician Networks. These acquisitions expanded Astrana's provider network and enhanced its value-based care enablement platform, contributing to the company's overall growth. The aggregate purchase price of $37.5 million, subject to customary adjustments, plus earnout payments in an aggregate amount of up to $21.5 million, has significantly impacted Astrana's financial results.



Astrana's nine-month results showed a 32% increase in total revenue and a 4% increase in net income attributable to Astrana, reflecting the company's overall growth trajectory. Despite the dip in profitability in Q3, Astrana's long-term prospects remain positive, as indicated by its revised guidance for the year ending December 31, 2024. The company raised its revenue guidance and narrowed its net income attributable to Astrana, Adjusted EBITDA, and EPS guidance, incorporating the financial contribution of the recently acquired entities.



Astrana's strong Q3 results and strategic acquisitions highlight the company's commitment to delivering accessible, high-quality, and high-value care to all. By leveraging its proprietary end-to-end technology solutions and expanding its provider network, Astrana is well-positioned to continue improving access, quality, and coordination of care for its patients. Investors seeking stable, income-focused investments may find Astrana Health, Inc. an attractive option, given its strong financial performance and growth prospects.

In conclusion, Astrana Health, Inc.'s third quarter 2024 results demonstrate the company's resilience and growth potential amidst strategic acquisitions. Despite a temporary dip in profitability, the company's long-term prospects remain positive, making it an attractive investment opportunity for income-focused investors.