Oscar Health, Inc. (OSCR) stock plummeted 13.29% in the pre-market trading session on Wednesday, following the company's disappointing fourth-quarter 2024 earnings report and lackluster full-year 2025 revenue guidance.
The health insurer reported a wider-than-expected loss for the fourth quarter, with an earnings per share loss of $0.62, missing the consensus estimate of a $0.58 loss. Revenue for the quarter also fell short of expectations, coming in at $2.39 billion, compared to the estimated $2.47 billion. Higher medical costs were cited as a key factor behind the earnings miss.
Adding to investor concerns, Oscar Health provided underwhelming full-year 2025 revenue guidance of $11.2-11.3 billion, falling short of the consensus estimate of $11.69 billion. This raised questions about the company's growth prospects, overshadowing its forecast of a return to profitability in 2025, with expected earnings from operations between $225-275 million.
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