Evolent Health (NYSE: EVH) shares plunged by a staggering 36.51% on November 7, 2024, following the release of the company's disappointing third-quarter financial results and lowered full-year guidance.
In the third quarter, Evolent Health reported an adjusted loss per share of $0.27, widely missing analysts' consensus estimate of $0.34 earnings per share. The company's revenue for the quarter came in at $621.4 million, slightly lower than the expected $627.2 million.
Adding to the disappointment, Evolent Health lowered its full-year 2024 adjusted EBITDA guidance to a range of $160 million to $175 million, down from its previous expectations. The company cited challenges in certain areas of its business for the poor performance and reduced outlook.
The shocking earnings miss and guidance cut triggered a massive sell-off in Evolent Health's shares, as investors reacted negatively to the company's dismal performance. The 36.51% plunge has raised concerns about the company's ability to navigate the current market conditions and achieve profitability in the near future.
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