PLYMOUTH MEETING, Pa. - AdaptHealth Corp. (NASDAQ: NASDAQ:AHCO), a provider of home healthcare solutions, announced the appointment of Russell Schuster as Chief Commercial Officer effective Monday. Schuster, with over 25 years of experience in executive roles, will be responsible for steering the company's commercial strategy and revenue growth. The appointment comes at a crucial time for AdaptHealth, which generated over $3.2 billion in revenue last year and maintains a market capitalization of $1.3 billion. According to InvestingPro analysis, the company's stock appears undervalued based on its Fair Value assessment.
Schuster's appointment comes after an extensive career in healthcare and finance, including a significant stint as President of Cardinal Health (NYSE:CAH) Canada. There, he was credited with driving substantial performance improvements. His tenure at Cardinal Health spanned over eight years, encompassing various leadership roles in corporate and business development as well as strategy.
Before his time at Cardinal Health, Schuster honed his expertise in investment banking and mergers and acquisitions with firms like Lehman Brothers, Barclays (LON:BARC) Capital, and Republic Services (NYSE:RSG). He also has a background in accounting and consulting, having started his career at Ernst & Young as a CPA.
AdaptHealth's CEO, Suzanne Foster, expressed confidence in Schuster's ability to contribute to the company's growth and strategic objectives. She emphasized that his experience is well-aligned with AdaptHealth's commitment to maintaining exceptional patient care while pursuing top-line growth.
AdaptHealth serves a broad range of patients across the United States, offering medical equipment and services for chronic condition management and daily living support. The company's network reaches an estimated 4.2 million patients annually and operates approximately 670 locations in 47 states.
This executive move is part of AdaptHealth's efforts to strengthen its leadership team and enhance its position in the home healthcare market. The information for this article is based on a press release statement.
In other recent news, AdaptHealth Corp. reported a slight increase in Q3 2024 net revenue, reaching $805.9 million despite challenges in its diabetes segment. While the company saw growth in sleep and respiratory revenues, diabetes revenue experienced a decline. Adjusted EBITDA was reported at $164.3 million, with a margin of 20.4%, and free cash flow surpassed targets.
RBC Capital adjusted its outlook on AdaptHealth shares, lowering the price target from $13.00 to $11.00, while maintaining an Outperform rating. This decision was influenced by the ongoing uncertainty surrounding the recovery trajectory of the diabetes business segment. Similarly, Truist Securities revised its stock price target for AdaptHealth from $13.00 to $12.00, maintaining a Buy rating, and adjusted the projections for adjusted EBITDA from 2024 to 2026.
AdaptHealth has secured a $950 million senior secured credit facility and raised its full-year guidance. However, the company adjusted its revenue midpoint for 2024 by reducing it by $45 million and EBITDA midpoint by $15 million, reflecting ongoing challenges in the diabetes segment. These are the recent developments for AdaptHealth.
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