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Compared to Estimates, R1 RCM INC (RCM) Q1 Earnings: A Look at Key Metrics

R1 RCM Inc. (RCM) reported $603.9 million in revenue for the quarter ended March 2024, representing a year-over-year increase of 10.7%. EPS of -$0.08 for the same period compares to $0.00 a year ago.

The reported revenue represents a surprise of -1.75% over the Zacks Consensus Estimate of $614.65 million. With the consensus EPS estimate being -$0.05, the EPS surprise was -60.00%.

While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.

Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.

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Here is how R1 RCM INC performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

  • Revenue- Net operating fees: $381.50 million versus the four-analyst average estimate of $357.32 million. The reported number represents a year-over-year change of +5.7%.

  • Revenue- Modular and other: $206.80 million versus the four-analyst average estimate of $233.99 million. The reported number represents a year-over-year change of +28.5%.

  • Revenue- Incentive fees: $15.60 million versus $23.03 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a -33.9% change.

View all Key Company Metrics for R1 RCM INC here>>>

Shares of R1 RCM INC have returned -3.3% over the past month versus the Zacks S&P 500 composite's -0.2% change. The stock currently has a Zacks Rank #5 (Strong Sell), indicating that it could underperform the broader market in the near term.

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