Health insurance company Clover Health (NASDAQ: CLOV) will be reporting results this Wednesday after market close. Here’s what investors should know.
Clover Health beat analysts’ revenue expectations last quarter, reporting revenues of $749.2 million, up 62% year on year. It was a very strong quarter for the company, with full-year EBITDA guidance beating analysts’ expectations and EPS in line with analysts’ estimates. It added 41,970 customers to reach a total of 155,773.
Is Clover Health a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Clover Health’s revenue to grow 52.5% year on year, improving from the 34.1% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Clover Health has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Clover Health’s peers in the health insurance providers segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Centene delivered year-on-year revenue growth of 9.9%, beating analysts’ expectations by 13.1%, and UnitedHealth reported flat revenue, topping estimates by 1.2%. Centene traded down 3.5% following the results while UnitedHealth was up 1.8%.
Read our full analysis of Centene’s results here and UnitedHealth’s results here.
Investors in the health insurance providers segment have had steady hands going into earnings, with share prices up 1.9% on average over the last month. Clover Health is down 14.1% during the same time and is heading into earnings with an average analyst price target of $4.58 (compared to the current share price of $4.35).
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