Astrana Health (NASDAQ:ASTH) Posts Quarterly Earnings Results, Beats Expectations By $0.25 EPS

Astrana Health (NASDAQ:ASTH) issued its earnings results on Thursday. The company reported $0.71 earnings per share for the quarter, beating analysts’ consensus estimates of $0.46 by $0.25, FiscalAI reports. The firm had revenue of $1.02 billion for the quarter, compared to the consensus estimate of $1.02 billion. Astrana Health had a return on equity of 10.30% and a net margin of 1.05%. The company’s revenue was up 7.1% compared to the same quarter last year. During the same quarter last year, the business posted $0.01 EPS.

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 Trading Down 10.8%

NASDAQ ASTH traded down $4.21 during trading hours on Friday, hitting $34.80. 483,359 shares of the company’s stock were exchanged, compared to its average volume of 501,358. The stock has a 50-day simple moving average of $37.06 and a 200 day simple moving average of $33.98. Astrana Health has a 1-year low of $18.08 and a 1-year high of $51.60. The firm has a market cap of $1.94 billion, a price-to-earnings ratio of 42.40 and a beta of 1.18. The company has a current ratio of 1.23, a quick ratio of 1.23 and a debt-to-equity ratio of 1.05.

Key Astrana Health News

Here are the key news stories impacting Astrana Health this week:

• Positive Sentiment: Needham & Company raised its price target to $45 from $41 and maintained a Buy rating, implying about 30% upside from the quoted share price. Needham rating information
• Positive Sentiment: Third-quarter revenue reached $1.02 billion, up 7.1% year over year, and matched analyst expectations. Third-quarter results
• Negative Sentiment: One report says the company’s quarterly revenue guidance missed expectations, raising concerns about near-term growth despite the in-line reported revenue. Quarterly results and guidance report
• Negative Sentiment: Coverage of earnings per share is inconsistent: Zacks reports $0.26, below its $0.44 consensus estimate, while another report gives $0.71 versus a $0.46 estimate. The discrepancy makes the earnings signal less clear, though the reported miss could add pressure. Zacks earnings report

Wall Street Analyst Weigh In

Several brokerages have issued reports on ASTH. Oppenheimer assumed coverage on shares of Astrana Health in a research report on Tuesday, September 15th. They issued an “outperform” rating and a $53.00 price target for the company. Truist Financial raised their price objective on Astrana Health from $47.00 to $55.00 and gave the stock a “buy” rating in a research report on Monday, August 10th. BTIG Research lifted their price objective on Astrana Health from $50.00 to $65.00 and gave the stock a “buy” rating in a research note on Tuesday, July 14th. Wall Street Zen downgraded shares of 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 report on Thursday, August 27th. Eight research analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the stock. According to data from MarketBeat.com, Astrana Health presently has a consensus rating of “Moderate Buy” and an average price target of $50.38.

Astrana Health Company Profile

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.