What To Look For From RDNT

Diagnostic imaging company RadNet (NASDAQ:RDNT) will be announcing earnings results next tomorrow afternoon. Here’s what to expect.

RadNet beat analysts’ revenue expectations by 1.6% last quarter, reporting revenues of $498.2 million, up 8.4% year on year. It was an exceptional quarter for the company, with a beat of analysts’ EPS estimates and an impressive beat of analysts’ same-store sales estimates.

Is RadNet a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.

This quarter, analysts are expecting RadNet’s revenue to grow 6.7% year on year to $491.9 million, slowing from the 14.7% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.23 per share.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. RadNet has a history of exceeding Wall Street’s expectations, beating revenue estimates every single time over the past two years by 3.6% on average.

Looking at RadNet’s peers in the testing & diagnostics services segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Guardant Health delivered year-on-year revenue growth of 38.5%, beating analysts’ expectations by 12.6%, and Quest reported revenues up 13.2%, topping estimates by 3.3%. Guardant Health traded up 27.9% following the results while Quest was down 4.9%.

Read our full analysis of Guardant Health’s results here and Quest’s results here.

Investors in the testing & diagnostics services segment have had steady hands going into earnings, with share prices up 1.2% on average over the last month. RadNet is up 13.8% during the same time and is heading into earnings with an average analyst price target of $80.57 (compared to the current share price of $82.89).

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