Health insurance company Alignment Healthcare (NASDAQ:ALHC) will be reporting earnings tomorrow after market hours. Here’s what to look for.

Alignment Healthcare beat analysts’ revenue expectations by 4.5% last quarter, reporting revenues of $692.4 million, up 51.6% year on year. It was a mixed quarter for the company, with full-year EBITDA guidance missing analysts’ expectations significantly. It added 7,200 customers to reach a total of 182,300.

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 45.4% year on year to $676.9 million, improving from the 28.6% increase it recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.08 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 three times over the last two years.

Looking at Alignment Healthcare’s peers in the health insurance providers segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Cencora delivered year-on-year revenue growth of 12.8%, beating analysts’ expectations by 5.2%, and Centene reported revenues up 3.4%, topping estimates by 4.4%. Cencora traded down 2.2% following the results while Centene was also down 6.3%.

Read our full analysis of Cencora’s results here and Centene’s results here.

Stocks generally had a good 2024. The Fed fought high inflation and won without sending the economy into a recession, otherwise lovingly known as a soft landing. The U.S. Central Bank is now cutting rates. That, plus the election of Donald Trump in November 2024, sent markets even higher, and while some of the health insurance providers stocks have shown solid performance, the group has generally underperformed, with share prices down 4.4% on average over the last month. Alignment Healthcare is down 12.6% during the same time and is heading into earnings with an average analyst price target of $14 (compared to the current share price of $13.30).

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