AUSTIN - Shares of agilon health, inc. (NYSE:AGL) fell sharply by 9.5% as the company's guidance for the upcoming quarters fell short of analyst expectations. Despite reporting a first-quarter profit that surpassed analyst estimates, the healthcare provider's stock took a hit due to its future revenue projections.
For the first quarter ended March 31, 2024, agilon reported adjusted earnings per share (EPS) of $0.01, which was $0.02 higher than the analyst consensus of -$0.01. Revenue for the quarter was $1.6 billion, a significant increase of 52% compared to $1.05 billion in the same period last year. However, this figure slightly missed the consensus estimate of $1.61 billion.
The company's Medicare Advantage membership saw a robust growth of 43%, reaching 523,000 members, while total members on the agilon platform grew to 654,000. Despite these positive membership trends and a 21% increase in adjusted EBITDA to $29 million, the market reacted negatively to the company's forward-looking statements.
Looking ahead, agilon provided second-quarter revenue guidance in the range of $1.55 to $1.57 billion, below the analyst consensus of $1.6 billion. Furthermore, the full-year 2024 revenue forecast was set between $6.125 and $6.175 billion, which also fell short of expectations, with analysts predicting $6.396 billion.
Steve Sell, agilon's CEO, commented on the results, stating, "Our first quarter results were in-line with our guidance. We continue to make tangible progress executing our performance action plan." He emphasized the company's position in the market, especially as funding environments for Medicare Advantage adjust.
The company's net loss of $6 million in the first quarter of 2024, compared to a net income of $16 million in the prior year's quarter, alongside the cautious revenue outlook, has raised concerns among investors, leading to the stock's decline. Agilon's commitment to maintaining full-year 2024 guidance for Medical Margin and Adjusted EBITDA suggests a focus on profitability and operating efficiency in the face of a challenging market.
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