Health insurance company Alignment Healthcare (NASDAQ: ALHC) will be announcing earnings results this Wednesday after market hours. Here’s what investors should know.
Alignment Healthcare beat analysts’ revenue expectations by 4.4% last quarter, reporting revenues of $926.9 million, up 47.5% year on year. It was a very strong quarter for the company, with an impressive beat of analysts’ EPS estimates and an impressive beat of analysts’ customer base estimates. It added 28,400 customers to reach a total of 217,500.
Is Alignment Healthcare a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Alignment Healthcare’s revenue to grow 40.9% year on year to $960.1 million, slowing from the 47.3% increase it recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.02 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Alignment Healthcare has only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 4.1% on average.
Looking at Alignment Healthcare’s peers in the health insurance providers segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Centene delivered year-on-year revenue growth of 22.4%, beating analysts’ expectations by 11.6%, and Molina Healthcare reported revenues up 15.7%, topping estimates by 4.4%. Centene’s stock price was unchanged after the resultswhile Molina Healthcare was down 16.9%.
Read our full analysis of Centene’s results here and Molina Healthcare’s results here.
Investors in the health insurance providers segment have had steady hands going into earnings, with share prices flat over the last month. Alignment Healthcare is down 15.3% during the same time and is heading into earnings with an average analyst price target of $18.40 (compared to the current share price of $11.86).
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