Q4 Earnings Outperformers: Clover Health (NASDAQ:CLOV) And The Rest Of The Health Insurance Providers Stocks
Let’s dig into the relative performance of Clover Health (NASDAQ:CLOV) and its peers as we unravel the now-completed Q4 health insurance providers earnings season.
Upfront premiums collected by health insurers lead to reliable revenue, but profitability ultimately depends on accurate risk assessments and the ability to control medical costs. Health insurers are also highly sensitive to regulatory changes and economic conditions such as unemployment. Going forward, the industry faces tailwinds from an aging population, increasing demand for personalized healthcare services, and advancements in data analytics to improve cost management. However, continued regulatory scrutiny on pricing practices, the potential for government-led reforms such as expanded public healthcare options, and inflation in medical costs could add volatility to margins. One big debate among investors is the long-term impact of AI and whether it will help underwriting, fraud detection, and claims processing or whether it may wade into ethical grey areas like reinforcing biases and widening disparities in medical care.
The 11 health insurance providers stocks we track reported a satisfactory Q4. As a group, revenues beat analysts’ consensus estimates by 2.3% while next quarter’s revenue guidance was in line.
In light of this news, share prices of the companies have held steady as they are up 2.7% on average since the latest earnings results.
Clover Health (NASDAQ:CLOV)
Founded in 2014 to improve healthcare for America's seniors through technology, Clover Health (NASDAQ:CLOV) provides Medicare Advantage plans for seniors with a focus on affordable care and uses its proprietary Clover Assistant software to help physicians manage patient care.
Clover Health reported revenues of $337 million, up 7.9% year on year. This print fell short of analysts’ expectations by 3.4%, but it was still a strong quarter for the company with a solid beat of analysts’ EPS estimates and full-year EBITDA guidance exceeding analysts’ expectations.
"2024 was a pivotal year for us as we demonstrated that our technology-first physician empowerment model, combined with our ability to directly manage members via our home care arm, achieves differentiated clinical and financial results," said Clover Health CEO Andrew Toy.
Clover Health Total Revenue
Clover Health delivered the weakest performance against analyst estimates of the whole group. The company added 1,554 customers to reach a total of 82,664. The stock is down 10.2% since reporting and currently trades at $3.71.
Pioneering a data-driven approach to family building that has achieved an industry-leading patient satisfaction score of +80, Progyny (NASDAQ:PGNY) provides comprehensive fertility and family building benefits solutions to employers, helping employees access quality fertility treatments and support services.
Progyny reported revenues of $298.4 million, up 10.6% year on year, outperforming analysts’ expectations by 7.6%. The business had a very strong quarter with an impressive beat of analysts’ sales volume estimates and EBITDA guidance for next quarter exceeding analysts’ expectations.
Progyny Total Revenue
Progyny scored the biggest analyst estimates beat among its peers. Although it had a fine quarter compared to its peers, the market seems unhappy with the results as the stock is down 4.7% since reporting. It currently trades at $21.78.
Founded in 1980 as a provider for underserved communities in Southern California, Molina Healthcare (NYSE:MOH) provides managed healthcare services primarily to low-income individuals through Medicaid, Medicare, and Marketplace insurance programs across 21 states.
Molina Healthcare reported revenues of $10.5 billion, up 16% year on year, exceeding analysts’ expectations by 1.9%. Still, it was a slower quarter as it posted a significant miss of analysts’ full-year EPS guidance estimates.
The stock is flat since the results and currently trades at $316.30.
With over 9,000 retail pharmacy locations serving as neighborhood health destinations across America, CVS Health (NYSE:CVS) operates retail pharmacies, provides pharmacy benefit management services, and offers health insurance through its Aetna subsidiary.
CVS Health reported revenues of $97.71 billion, up 4.2% year on year. This result topped analysts’ expectations by 0.8%. Overall, it was a strong quarter as it also put up an impressive beat of analysts’ same-store sales estimates and a solid beat of analysts’ EPS estimates.
The stock is up 21.1% since reporting and currently trades at $66.61.
Founded in 2013 with a mission to transform healthcare for seniors, Alignment Healthcare (NASDAQ:ALHC) provides Medicare Advantage health plans for seniors with features like concierge services, transportation benefits, and technology-driven care coordination.
Alignment Healthcare reported revenues of $701.2 million, up 50.7% year on year. This number beat analysts’ expectations by 3.6%. It was a very strong quarter as it also produced EBITDA guidance for next quarter exceeding analysts’ expectations and full-year revenue guidance exceeding analysts’ expectations.
Alignment Healthcare scored the fastest revenue growth and highest full-year guidance raise among its peers. The company added 6,800 customers to reach a total of 189,100. The stock is up 22.6% since reporting and currently trades at $16.50.
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