CorVel Corporation reports increased revenues and earnings for Q3 and nine months ended December 2024, driven by innovation and automation.
Quiver AI Summary
CorVel Corporation announced its financial results for the quarter ending December 31, 2024, reporting revenues of $228 million, a rise from $202 million the previous year, with earnings per share increasing to $0.46 from $0.33. For the nine months ended December 31, 2024, revenues grew to $664 million from $588 million, and earnings per share rose to $1.32 from $1.09, adjusted for a recent three-for-one stock split. Notable highlights from the quarter included a 13% increase in revenue and a significant 39% rise in diluted earnings per share. The company emphasized its innovative technological advancements, particularly in automation and generative AI, aimed at improving operational efficiency and reducing healthcare administrative costs through its CERIS service. CorVel ended the quarter with $163 million in cash and no debt, while also repurchasing $9.6 million of its common stock.
Potential Positives
- Revenues increased by 13% to $228 million in the quarter compared to the same quarter of the previous year, indicating strong growth.
- Earnings per share grew by 39% to $0.46, demonstrating improved profitability.
- The company ended the quarter with $163 million in cash, cash equivalents, and no borrowings, highlighting a strong financial position.
- CorVel's generative-AI-based functionality release aims to enhance operational efficiency and improve outcomes in the healthcare market.
Potential Negatives
- The press release highlights a significant increase in general and administrative expenses, which rose from $19.8 million to $22.1 million in the most recent quarter, indicating potential inefficiencies or increased operational costs that may impact profitability.
- The persistent upward trend of medical costs mentioned may reflect ongoing challenges in the market that could negatively affect customer demand and the company's financial performance in the healthcare sector.
- The forward-looking statements caution that actual results may differ materially due to various risks and uncertainties, which might instill concern among investors regarding the company's future performance.
FAQ
What were CorVel Corporation's revenues for Q3 fiscal year 2025?
CorVel Corporation reported revenues of $228 million for the quarter ended December 31, 2024.
How much did earnings per share increase in Q3 2025?
Earnings per share increased by 39% to $0.46 compared to $0.33 in Q3 2024.
What drove CorVel's revenue growth in 2024?
The revenue growth was driven by increased demand and technological innovations in their services.
How is CorVel addressing rising medical costs?
CorVel is offering solutions like CERIS to help ASO customers achieve medical savings and greater cost efficiency.
What notable technology enhancements were released recently?
Generative-AI-based functionality was introduced to streamline document processing and improve the integrated communication platform.
Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.
$CRVL Insider Trading Activity
$CRVL insiders have traded $CRVL stock on the open market 21 times in the past 6 months. Of those trades, 0 have been purchases and 21 have been sales.
Here’s a breakdown of recent trading of $CRVL stock by insiders over the last 6 months:
- V GORDON CLEMONS (Chairman of the Board) has made 0 purchases and 9 sales selling 25,000 shares for an estimated $9,163,995.
- MAXIM SHISHIN (Chief Information Officer) has made 0 purchases and 3 sales selling 8,075 shares for an estimated $2,421,282.
- ALAN HOOPS has made 0 purchases and 2 sales selling 5,600 shares for an estimated $1,935,204.
- MICHAEL G COMBS (CEO & President) has made 0 purchases and 2 sales selling 5,359 shares for an estimated $1,788,484.
- R JUDD JESSUP has made 0 purchases and 2 sales selling 4,631 shares for an estimated $1,408,092.
- BRANDON O'BRIEN (Chief Financial Officer) sold 1,000 shares for an estimated $314,975
- MARK E. BERTELS (EVP - Risk Management Services) has made 0 purchases and 2 sales selling 650 shares for an estimated $215,012.
To track insider transactions, check out Quiver Quantitative's insider trading dashboard.
$CRVL Hedge Fund Activity
We have seen 120 institutional investors add shares of $CRVL stock to their portfolio, and 101 decrease their positions in their most recent quarter.
Here are some of the largest recent moves:
- ASSENAGON ASSET MANAGEMENT S.A. removed 139,356 shares (-100.0%) from their portfolio in Q4 2024, for an estimated $15,504,748
- MORGAN STANLEY added 27,337 shares (+24.4%) to their portfolio in Q3 2024, for an estimated $8,936,191
- KAYNE ANDERSON RUDNICK INVESTMENT MANAGEMENT LLC added 20,276 shares (+1.1%) to their portfolio in Q3 2024, for an estimated $6,628,021
- GOLDMAN SACHS GROUP INC added 19,902 shares (+78.0%) to their portfolio in Q3 2024, for an estimated $6,505,764
- JPMORGAN CHASE & CO added 19,667 shares (+106.6%) to their portfolio in Q3 2024, for an estimated $6,428,945
- DIMENSIONAL FUND ADVISORS LP removed 18,442 shares (-3.3%) from their portfolio in Q3 2024, for an estimated $6,028,505
- NORTHERN TRUST CORP added 17,547 shares (+16.8%) to their portfolio in Q3 2024, for an estimated $5,735,938
To track hedge funds' stock portfolios, check out Quiver Quantitative's institutional holdings dashboard.
Full Release
FORT WORTH, Texas, Feb. 04, 2025 (GLOBE NEWSWIRE) -- CorVel Corporation (NASDAQ: CRVL) announced the results for the quarter ended December 31, 2024. Revenues for the quarter were $228 million, an increase from $202 million in the December quarter of 2023. Earnings per share for the quarter were $0.46, compared to $0.33 in the same quarter of the prior year. Revenues for the nine months ended December 31, 2024 were $664 million, an increase from $588 million during the nine months ended December 31, 2023. Earnings per share for the nine months ended December 31, 2024 were $1.32, compared to $1.09 during the nine months ended December 31, 2023. The earnings per share numbers for the current and prior year have been adjusted to reflect the three-for-one stock split of its common stock which was paid on December 24, 2024.
Third Quarter Fiscal Year 2025 Highlights
Revenue increased 13% to $228 million, compared to the third quarter of fiscal year 2024.
Gross profit increased 25% to $52.9 million, at 23.2% gross margin, compared to the third quarter of fiscal year 2024 gross profit of $42.2 million.
Diluted earnings per share increased 39% to $0.46, compared to the third quarter of fiscal year 2024 diluted earnings per share of $0.33.
Exited the quarter with $163 million cash, cash equivalents, and no borrowings.
The Company repurchased $9.6 million of common stock during the quarter.
A key to CorVel’s success and differentiation in technological innovation is the development team’s structure, the depth and tenure of the employees, and the lack of impedance in translating business needs into the development and implementation of functioning systems. Due to the depth and strength of the IT team, system updates, and new features are released weekly, which enables rapid progress on enhancements and advancements in automation and innovation. In the December quarter, generative-AI-based functionality was released to streamline document processing and identify claim milestones, and improvements are planned to enhance the integrated communication platform. These enhancements can optimize outcomes, improve the experience of injured workers, and make day-to-day tasks easier, which allows CorVel professionals to focus on higher-level activities.
During the quarter in the healthcare market, the persistent upward trend of medical costs is causing Administrative Services Only, ASO, customers to seek additional medical savings and greater cost efficiency in claims. CERIS is ideally equipped to solve the growing demand by offering multiple audits and lowering claim thresholds. With substantial expertise in prepay, CERIS is able to accommodate ASOs and Payers with the tools needed to reduce medical spend without additional administrative overhead.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995
All statements included in this press release, other than statements or characterizations of historical fact, are forward-looking statements. These forward-looking statements are based on the Company’s current expectations, estimates and projections about the Company, management’s beliefs, and certain assumptions made by the Company, and events beyond the Company’s control, all of which are subject to change. Such forward-looking statements include, but are not limited to, improved productivity resulting from automation and augmentation across enterprise business systems. These forward-looking statements are not guarantees of future results and are subject to risks, uncertainties and assumptions that could cause the Company’s actual results to differ materially and adversely from those expressed in any forward-looking statement results of operations and financial condition is greater than our initial assessment. The risks and uncertainties referred to above include but are not limited to factors described in this press release and the Company’s filings with the Securities and Exchange Commission, including but not limited to “Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended March 31, 2024, and the Company’s Quarterly Report on Form 10-Q for the quarters ended June 30, 2024 and September 30, 2024. The forward-looking statements in this press release speak only as of the date they are made. The Company undertakes no obligation to revise or update publicly any forward-looking statement for any reason.
CorVel Corporation
Quarterly Results – Income Statement
Quarters and Nine Months Ended December 31, 2024 (unaudited) and December 31, 2023 (unaudited)
Quarter Ended | December 31, 2024 | December 31, 2023 | ||||||
Revenues | $ | 227,973,000 | $ | 202,303,000 | ||||
Cost of revenues | 175,115,000 | 160,143,000 | ||||||
Gross profit | 52,858,000 | 42,160,000 | ||||||
General and administrative | 22,058,000 | 19,798,000 | ||||||
Income from operations | 30,800,000 | 22,362,000 | ||||||
Income tax provision | 7,029,000 | 5,267,000 | ||||||
Net income | $ | 23,771,000 | $ | 17,095,000 | ||||
Earnings Per Share: | ||||||||
Basic | $ | 0.46 | $ | 0.33 | ||||
Diluted | $ | 0.46 | $ | 0.33 | ||||
Weighted Shares | ||||||||
Basic | 51,388,000 | 51,318,000 | ||||||
Diluted | 52,038,000 | 51,978,000 | ||||||
Nine Months Ended | December 31, 2024 | December 31, 2023 | ||||||
Revenues | $ | 664,075,000 | $ | 588,078,000 | ||||
Cost of revenues | 512,528,000 | 459,788,000 | ||||||
Gross profit | 151,547,000 | 128,290,000 | ||||||
General and administrative | 64,043,000 | 55,786,000 | ||||||
Income from operations | 87,504,000 | 72,504,000 | ||||||
Income tax provision | 18,758,000 | 15,706,000 | ||||||
Net income | $ | 68,746,000 | $ | 56,798,000 | ||||
Earnings Per Share: | ||||||||
Basic | $ | 1.34 | $ | 1.11 | ||||
Diluted | $ | 1.32 | $ | 1.09 | ||||
Weighted Shares | ||||||||
Basic | 51,384,000 | 51,372,000 | ||||||
Diluted | 51,999,000 | 52,056,000 | ||||||
CorVel Corporation
Quarterly Results – Condensed Balance Sheet
December 31, 2024 (unaudited) and March 31, 2024
December 31, 2024 | March 31, 2024 | |||||||
Cash | $ | 162,944,000 | $ | 105,563,000 | ||||
Customer deposits | 99,496,000 | 88,142,000 | ||||||
Accounts receivable, net | 106,178,000 | 97,108,000 | ||||||
Prepaid taxes and expenses | 14,543,000 | 11,418,000 | ||||||
Property, net | 91,256,000 | 85,892,000 | ||||||
Goodwill and other assets | 42,420,000 | 42,498,000 | ||||||
Right-of-use asset, net | 21,940,000 | 24,058,000 | ||||||
Total | $ | 538,777,000 | $ | 454,679,000 | ||||
Accounts and taxes payable | $ | 16,630,000 | $ | 16,631,000 | ||||
Accrued liabilities | 200,108,000 | 167,868,000 | ||||||
Long-term lease liabilities | 21,189,000 | 22,533,000 | ||||||
Paid-in capital | 246,698,000 | 233,632,000 | ||||||
Treasury stock | (822,514,000 | ) | (793,905,000 | ) | ||||
Retained earnings | 876,666,000 | 807,920,000 | ||||||
Total | $ | 538,777,000 | $ | 454,679,000 | ||||
Contact: Melissa Storan |
Phone: 949-851-1473 |
www.corvel.com |
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