Health insurance company Clover Health (NASDAQ:CLOV) will be reporting results tomorrow after market hours. Here’s what to look for.
Clover Health missed analysts’ revenue expectations by 3.4% last quarter, reporting revenues of $337 million, up 7.9% year on year. It was a strong quarter for the company, with an impressive beat of analysts’ EPS estimates and full-year EBITDA guidance exceeding analysts’ expectations. It added 1,554 customers to reach a total of 82,664.
Is Clover Health a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Clover Health’s revenue to grow 35.2% year on year to $469.1 million, improving from the 7.7% increase it recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.07 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Clover Health has missed Wall Street’s revenue estimates six times over the last two years.
Looking at Clover Health’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. Alignment Healthcare delivered year-on-year revenue growth of 47.5%, beating analysts’ expectations by 4.4%, and CVS Health reported revenues up 7%, topping estimates by 1.5%. Alignment Healthcare traded down 7% following the results while CVS Health was up 1.2%.
Read our full analysis of Alignment Healthcare’s results here and CVS Health’s results here.
There has been positive sentiment among investors in the health insurance providers segment, with share prices up 4.9% on average over the last month. Clover Health is up 4.7% during the same time and is heading into earnings with an average analyst price target of $4.75 (compared to the current share price of $3.36).
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