NEW YORK - Evolent Health Inc . (NYSE:EVH) shares tumbled 33% in after-hours trading Thursday after the healthcare company reported third-quarter earnings that missed estimates and provided disappointing guidance.
Evolent posted adjusted earnings of $0.04 per share for Q3, falling well short of the $0.28 per share analysts were expecting. Revenue came in at $621.4 million, slightly below the consensus estimate of $627.17 million but up 21.6% year-over-year.
The company revised its full-year 2024 revenue outlook to $2.55-$2.575 billion, below Wall Street's forecast of $2.577 billion. Evolent also lowered its adjusted EBITDA guidance for 2024.
CEO Seth Blackley acknowledged the results were impacted by "significant shifts in medical expenses experienced in the managed care industry." He said the company's third quarter adjusted EBITDA was negatively affected by losses in its Performance Suite business.
"While the team and I are disappointed in our Adjusted EBITDA results this quarter, we believe that our solutions continue to lead the market for managing the cost and quality of complex health conditions," Blackley stated.
Despite the weak quarter, Evolent announced a record six new contract agreements signed in Q3. The company said it is taking "aggressive actions" aimed at improving profitability heading into 2025.
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