Astrana Health (NASDAQ:ASTH – Get Free Report) issued its earnings results on Thursday. The company reported $0.71 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.46 by $0.25, FiscalAI reports. The firm had revenue of $1.02 billion during the quarter, compared to analyst estimates of $1.02 billion. Astrana Health had a net margin of 1.05% and a return on equity of 10.30%. The business’s revenue was up 7.1% on a year-over-year basis. During the same period in the previous year, the firm earned $0.01 earnings per share.
Here are the key takeaways from Astrana Health’s conference call:
- Astrana reported record third-quarter revenue of $1.02 billion, up 7%, and adjusted EBITDA of $77.2 million, up 13% year over year and near the high end of guidance. Management said EBITDA growth was organic, supported by maturing risk-bearing cohorts, improved medical cost performance, and operating efficiencies.
- Cash generation and debt reduction strengthened the balance sheet: Astrana generated about $105 million in free cash flow through the first nine months and repaid $116 million of debt, bringing net leverage to 2.2x. The company expects to approach 2.0x net leverage by year-end.
- Growth initiatives include new Medicare Advantage partnerships for 2027, expansion into Georgia, and two new Care Enablement clients. Management said Texas risk-bearing cohorts are performing ahead of plan and expects the platform, including AI-enabled tools, to support scalable growth and operating leverage.
- Medicaid remains a headwind: membership attrition is tracking toward the middle-to-high end of this year’s 10%–15% range, and medical cost trends are above initial assumptions. For 2027, Astrana is planning for a 10%–15% Medicaid membership decline and a mid-single-digit EBITDA growth headwind, while also anticipating exchange and ACO-related changes.
- Astrana narrowed its 2026 guidance ranges while maintaining their midpoints: revenue of $3.9–$4.0 billion, adjusted EBITDA of $261–$274 million, and free cash flow of $107.5–$130 million. Management expects the fourth quarter to be the lowest-profitability quarter of the year and said it will provide formal 2027 guidance with its next results.
Astrana Health Stock Performance
ASTH stock traded down $4.51 during midday trading on Friday, hitting $34.50. 1,064,102 shares of the stock traded hands, compared to its average volume of 291,966. Astrana Health has a 1-year low of $18.08 and a 1-year high of $51.60. The company has a debt-to-equity ratio of 1.05, a current ratio of 1.23 and a quick ratio of 1.23. The stock’s fifty day simple moving average is $36.98 and its 200-day simple moving average is $34.02. The firm has a market cap of $1.92 billion, a P/E ratio of 32.24 and a beta of 1.18.
Trending Headlines about Astrana Health
Here are the key news stories impacting Astrana Health this week:
- Positive Sentiment: Needham raised its price target from $41 to $45 and reiterated a Buy rating, implying about 31% upside from the cited $34.38 share price. Needham rating information
- Positive Sentiment: Third-quarter revenue reached $1.02 billion, matching estimates and increasing 7.1% year over year; the company also reported a substantial improvement in earnings compared with the prior-year quarter. Astrana Health third-quarter results
- Negative Sentiment: Reports said Astrana’s quarterly revenue guidance fell short of expectations. That weaker forward outlook may have outweighed the revenue growth and profit improvement in the reported quarter, pressuring the shares. Report on results and guidance
Wall Street Analyst Weigh In
Several equities research analysts have recently commented on ASTH shares. Barclays boosted their price target on shares of Astrana Health from $50.00 to $53.00 and gave the company an “overweight” rating in a report on Friday, August 7th. TD Cowen lifted their price target on Astrana Health from $45.00 to $50.00 and gave the company a “buy” rating in a report on Tuesday, July 14th. Needham & Company LLC boosted their price target on Astrana Health from $41.00 to $45.00 and gave the stock a “buy” rating in a research report on Friday. Wall Street Zen lowered Astrana Health from a “buy” rating to a “hold” rating in a research report on Sunday, August 16th. Finally, Weiss Ratings restated a “hold (c)” rating on shares of Astrana Health in a research note on Thursday, August 27th. Eight equities research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company. According to MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average price target of $50.38.
Check Out Our Latest Stock Report on ASTH
About Astrana Health
Astrana Health, Inc (NASDAQ: ASTH), formerly known as Apollo Medical Holdings, is a healthcare enablement company focused on helping providers and health plans deliver coordinated, value-based care. The company combines physician networks, care-management capabilities, technology and data analytics to support improved clinical outcomes and more efficient healthcare delivery.
Astrana Health’s services include population health management, physician practice support, utilization management, care coordination and clinical analytics.
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