Health insurance company Alignment Healthcare (NASDAQ: ALHC) will be reporting results this Thursday after market close. Here’s what to expect.
Alignment Healthcare beat analysts’ revenue expectations last quarter, reporting revenues of $1.01 billion, up 44.4% year on year. It was a mixed quarter for the company, with a beat of analysts’ EPS estimates but revenue guidance for next quarter missing analysts’ expectations significantly. It added 6,700 customers to reach a total of 236,300.
Is Alignment Healthcare a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Alignment Healthcare’s revenue to grow 31.5% year on year, slowing from the 47.5% increase it recorded in the same quarter last year.
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 a history of exceeding Wall Street’s expectations.
Looking at Alignment Healthcare’s peers in the health insurance providers segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Elevance Health delivered year-on-year revenue growth of 1.5%, beating analysts’ expectations by 2.4%, and UnitedHealth reported revenues up 2%, topping estimates by 1.7%. Elevance Health traded up 5.5% following the results while UnitedHealth was also up 9.3%.
Read our full analysis of Elevance Health’s results here and UnitedHealth’s results here.
There has been positive sentiment among investors in the health insurance providers segment, with share prices up 10.8% on average over the last month. Alignment Healthcare is up 30% during the same time and is heading into earnings with an average analyst price target of $25.38 (compared to the current share price of $21.90).
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