RadNet, Inc. (RDNT) kicked off the week with a bang, reporting impressive third-quarter 2024 results that surpassed analysts’ expectations. The company’s revenue reached $461.1 million, exceeding the consensus estimate of $437.88 million, showcasing strong growth across its operations.
One of the key drivers of this impressive performance was the Digital Health segment, which witnessed a remarkable 34.3% surge in revenue, reaching $16.4 million. This growth was significantly attributed to the continued success of the Enhanced Breast Cancer Detection DeepHealth AI-powered screening mammography program. AI revenue alone climbed to $5.1 million, a $2.2 million increase from the previous quarter.
Beyond the Digital Health segment, RadNet’s core business also performed exceptionally well. Aggregate procedural volumes increased by 9% in the third quarter, while same-center procedural volumes rose by 5.5% compared to the same period last year. These figures highlight the strong demand for RadNet’s advanced imaging services.
Howard Berger, RadNet’s President and CEO, expressed his satisfaction with the results, stating, “We continue to demonstrate strong growth and record results in each of our Imaging Center and Digital Health reportable operating segments.” He also emphasized the positive impact of improved reimbursement rates and effective cost controls on the company’s financial performance.
RadNet’s financial strength is reflected in its adjusted EBITDA, which reached $73.7 million, a notable 27.2% increase year-over-year. This growth, despite inflationary pressures on staffing costs, underscores the company’s resilience and effective management strategies.
Furthermore, RadNet’s earnings per share (EPS) also exceeded expectations, coming in at $0.18, a significant improvement from $0.13 in the same period last year and surpassing the consensus estimate of $0.15.
Riding on the wave of its strong performance, RadNet has revised its guidance upwards. The company now anticipates Imaging Center Segment sales for 2024 to be between $1.71 billion and $1.76 billion, surpassing its previous guidance of $1.685 billion to $1.735 billion. For the Digital Health segment, RadNet maintains its revenue guidance range of $60 million to $70 million.
Berger further highlighted the company’s bullish outlook, stating, “Given the positive trends we continue to experience in virtually all aspects of our business and the strong financial performance of the third quarter, we are revising upwards certain guidance levels in anticipation of financial results that we believe will exceed both our original expectations and the adjustments we made to the guidance ranges upon releasing our first and second quarter 2024 results.”
RadNet is also actively expanding its reach. The company has 15 new centers in various stages of construction and development, with plans to open them in 2025. This expansion strategy reflects RadNet’s commitment to growth and its confidence in the future of its business.
The market responded enthusiastically to RadNet’s impressive results. RDNT stock surged by 17.20% to $85 during the premarket session on Monday, underscoring investor confidence in the company’s trajectory.
