Shares of agilon health, inc. (NYSE: AGL) plummeted over 34% 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. More concerningly, 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.