By Rob Curran
Evolent Health's shares plunged after the health-care-services company posted a quarterly net loss and adjusted earnings below guidance, and cut its full-year outlook amid higher costs related to its cancer-care offerings, and issues with previously paid claims.
Shares of the Wilmington, Del., company were down 36% at $15.80 in premarket trading Friday.
Evolent, which provides health-management services for people with complex conditions, Thursday said it booked a third-quarter net loss of $31.2 million, or 27 cents a share, slightly narrower than $33.2 million, or 30 cents a share, a year earlier.
Revenue rose 22% to $621.4 million. Analysts polled by FactSet had forecast earnings per share of 5 cents on revenue of $627.2 million.
Evolent reported adjusted earnings before interest, taxes, depreciation and amortization of $31.8 million, down 35% from $48.7 million a year earlier, and well below the company's August guidance for $60 million-$68 million and the average analyst forecast for $62.7 million.
"Adjusted EBITDA result was negatively impacted by losses in our Performance Suite, driven both by new information from our partners regarding claims paid in prior periods and an industry-wide spike in oncology costs during the third quarter," Co-founder and Chief Executive Seth Blackley said. "We are taking aggressive actions with the goal of increasing profitability heading into 2025."
The company cut its outlook for the full year, saying it now expects 2024 revenue of $2.55 billion to $2.575 billion, and adjusted EBITDA of $160 million to $175 million. In August, Evolent said it expected full-year revenue of $2.56 billion to $2.60 billion, and adjusted EBITDA of $230 million to $245 million.
Evolent provides a range of services, such as insurance-plan administration and liaising with health-care providers for patients with cancer and other conditions.
Write to Rob Curran at rob.curran@dowjones.com
(END) Dow Jones Newswires
November 08, 2024 07:42 ET (12:42 GMT)
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