Health insurance company Alignment Healthcare (NASDAQ:ALHC) will be reporting earnings tomorrow after market hours. Here’s what you need to know.
Alignment Healthcare beat analysts’ revenue expectations by 3.6% last quarter, reporting revenues of $701.2 million, up 50.7% year on year. It was an exceptional quarter for the company, with EBITDA guidance for next quarter exceeding analysts’ expectations and an impressive beat of analysts’ EPS estimates. It added 6,800 customers to reach a total of 189,100.
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 41.3% year on year to $888.1 million, slowing from the 43.1% 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. Alignment Healthcare has missed Wall Street’s revenue estimates twice over the last two years.
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. Centene delivered year-on-year revenue growth of 15.4%, beating analysts’ expectations by 8.3%, and Elevance Health reported revenues up 14.8%, topping estimates by 5.3%. Centene traded down 3.3% following the results while Elevance Health was up 4.9%.
Read our full analysis of Centene’s results here and Elevance Health’s results here.
The outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. While some of the health insurance providers stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 3.6% on average over the last month. Alignment Healthcare is down 2.2% during the same time and is heading into earnings with an average analyst price target of $17.78 (compared to the current share price of $17.69).
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