WASHINGTON - Evolent Health, Inc. (NYSE: NYSE:EVH) shares edged up 1.97% following the release of its first-quarter financial results, which surpassed analyst expectations and provided an optimistic outlook for the future. The company, known for its health care solutions aimed at better outcomes for complex conditions, reported adjusted earnings per share (EPS) of $0.34 for the quarter, $0.13 higher than the analyst estimate of $0.21. Revenue for the quarter was also strong at $639.65 million, significantly exceeding the consensus estimate of $600.82 million.
The company's revenue represented a substantial 49.6% increase from the $427.69 million reported in the same quarter last year, showcasing robust growth. Despite this revenue surge, the company posted a net loss of -$25.2 million, which is an improvement from the -$26.26 million net loss in the first quarter of the previous year.
Evolent Health's forward-looking guidance also contributed to the positive investor sentiment. For the second quarter of 2024, the company anticipates revenue to be in the range of $625-645 million, which is above the analyst consensus of $606.6 million. The midpoint of this guidance range, $635 million, is well above the expected consensus, indicating a positive outlook. Additionally, the full-year 2024 revenue guidance is set at $2.53-2.6 billion, again surpassing the consensus estimate of $2.467 billion.
Seth Blackley, CEO and Co-Founder of Evolent, expressed confidence in the company's trajectory, stating, "We are pleased with our first-quarter results and the solid momentum in the business as we raise our revenue guide for the year, and reiterate our full year Adjusted EBITDA and year-end exit run-rate Adjusted EBITDA guidance." Blackley also highlighted the operational milestone of ending the transition services agreement for NIA and the acceleration of patient navigation capabilities through a partnership with Careology.
Evolent Health's positive guidance and first-quarter performance reflect the company's strategic initiatives and its ability to adapt to the challenging environment for health plans. With the stock movement indicating a cautiously optimistic market response, investors may be looking forward to continued growth and operational efficiency from Evolent in the coming quarters.
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