RadNet Soars 20.3% Pre-Market on AI-Driven Growth and Upgraded Guidance

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RadNet (NASDAQ:RDNT) is on a roll, smashing revenue records in Q3 2024 with a 14.7% year-over-year jump to $461.1 million. Its share price jumped by more than 20% in the pre-market trading today. The Digital Health segment is the real showstopper, with revenue soaring 34.3%, thanks to a 75.8% spike in AI-powered tools like its Enhanced Breast Cancer Detection (EBCD) program. While adjusted EPS of $0.18 missed analyst estimates by $0.06, the company delivered a stellar 27.2% boost in adjusted EBITDA, showcasing resilience against rising costs and strong demand for advanced imaging.

CEO Dr. Howard Berger isn't just celebrating; he's doubling down on growth. The launch of RadNet's DeepHealth OS platform at December's RSNA conference is set to put the company's AI innovation in the spotlight. Meanwhile, procedural volumes surged 9%, and same-center volumes climbed 5.5%, prompting RadNet to raise its full-year guidance for revenue, adjusted EBITDA, and free cash flow. The revised revenue target now sits between $1.71 billion and $1.76 billion, cementing the company's upward trajectory and signaling confidence in its strategic investments.

And the balance sheet? Rock solid. With $748.9 million in cash and a record-low leverage ratio below 1.0x, RadNet is locking in its financial strength while aggressively expanding. Investors should keep their eyes on the DeepHealth OS debut, which could unlock a new growth chapter as AI-powered healthcare transforms the industry. RadNet isn't just keeping up with demandit's defining the future of diagnostic imaging.

This article first appeared on GuruFocus.

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