Canada's CareRx Q2 revenue rises, slightly misses estimates

Overview

• Canada pharmacy services provider's Q2 revenue rose yr/yr, slightly missing analyst expectations

• Adjusted EBITDA for Q2 was flat yr/yr and missed analyst expectations

• Company secured new national contract to add about 3,000 beds in Q3

• CareRx declares a quarterly dividend of C$0.022 per share, up 10% from prior quarter

Outlook

• CareRx expects to service an additional 3,000 retirement residents starting in Q3 2026

• Company says onboarding of new retirement residences will begin in Q3 2026

Result Drivers

• BEDS SERVICED AND COST SAVINGS - Co said increase in beds serviced and cost savings initiatives supported results, but were offset by funding changes for unoccupied ward beds in Ontario

Company press release: ID:nNFC97kCLC

Key Details

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 7 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the drug retailers peer group is "buy"

• Wall Street's median 12-month price target for CareRx Corp is C$5.00, about 46.2% above its July 29 closing price of C$3.42

• The stock recently traded at 19 times the next 12-month earnings vs. a P/E of 18 three months ago

Reuters Recommended Reads

• July 29 - Netherlands' Redcare Pharmacy Q2 revenue rises; reaffirms 2026 outlook

• July 29 - Canada's Bausch Health Q2 results beat estimates; raises 2026 outlook

• July 27 - Ensign Group Q2 profit beats on higher occupancy rates

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)