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OVERLAND PARK, Kan. - SelectQuote, Inc. (NYSE: SLQT) shares surged 32.9% after the insurance comparison platform reported fiscal second quarter earnings that handily beat analyst expectations and raised its full-year outlook, as well as the announcement of a strategic investment into the company by several funds.
The company posted adjusted earnings per share of $0.30 for the quarter ended December 31, significantly exceeding the consensus estimate of $0.09. Revenue jumped 18.7% YoY to $481.1 million, topping analyst projections of $441.5 million.
On Monday, the company announced a $350 million strategic investment led by Bain Capital and Morgan Stanley (NYSE:MS) Private Credit, which CEO Tim Danker said would provide "improved liquidity and operating flexibility" to pursue growth opportunities.
SelectQuote’s strong performance was driven by growth across its business segments. The core Senior division saw revenue increase 3% YoY to $255.6 million, while approved Medicare Advantage policies rose 6% to 247,849.
"SelectQuote delivered impressive results during our fiscal second quarter despite a historically disruptive Annual Enrollment Period," said Danker. He highlighted the company’s "differentiated, high-touch, agent-led model" as a key factor in navigating challenging market conditions.
The Healthcare Services segment posted robust 64% YoY revenue growth to $183.4 million, fueled by a 54% increase in SelectRx members to over 96,000.
Looking ahead, SelectQuote raised its fiscal 2025 revenue guidance to a range of $1.5 billion to $1.575 billion, above the previous analyst consensus of $1.46 billion.
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