Shares of agilon health, inc. (NYSE: AGL) plummeted over 33% in pre-market trading on November 8, 2024, after the healthcare services company reported disappointing third-quarter 2024 results that missed Wall Street's expectations on multiple key metrics. The earnings miss and lowered full-year guidance spooked investors, leading to the massive sell-off of the stock.

For the third quarter, agilon health reported total revenue of $1.45 billion, slightly missing the consensus estimate of $1.47 billion. The company posted a net loss of $118 million, significantly wider than the expected loss of $41.1 million. Adjusted EBITDA loss also came in worse than anticipated at $96 million versus the estimated loss of $20.1 million.

The earnings miss was primarily attributed to several negative factors that impacted the company's financials, including lower-than-expected 2024 risk adjustment revenue, negative prior year adjustments mainly related to risk adjustment and Part D expenses, and higher current year medical costs. According to agilon health, its third quarter results were "negatively impacted as a result of additional information received from payors in the third quarter."

Looking ahead, the company cut its full-year 2024 outlook, guiding for medical margin in the range of $210 million to $240 million, down significantly from the previous estimate of $400 million to $450 million. Adjusted EBITDA loss is now expected to be between $155 million and $135 million, wider than the prior guidance range of $60 million to $15 million loss.

The weaker-than-expected Q3 performance and the lowered annual guidance have raised concerns among investors about the company's financial health and future prospects, leading to the steep decline in agilon health's stock price in pre-market trading.