Healthcare solutions company Evolent Health (NYSE: EVH) will be announcing earnings results tomorrow after market close. Here’s what investors should know.
Evolent Health missed analysts’ revenue expectations by 0.7% last quarter, reporting revenues of $646.5 million, up 16.3% year on year. It was a softer quarter for the company, with a significant miss of analysts’ EPS estimates and EBITDA guidance for next quarter missing analysts’ expectations significantly.
Is Evolent Health a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Evolent Health’s revenue to decline 27.9% year on year to $461.2 million, a reversal from the 49.6% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.10 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Evolent Health has missed Wall Street’s revenue estimates three times over the last two years.
Looking at Evolent Health’s peers in the healthcare technology segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Premier’s revenues decreased 8.9% year on year, beating analysts’ expectations by 7.4%, and Omnicell reported revenues up 9.6%, topping estimates by 3.7%.
Read our full analysis of Premier’s results here and Omnicell’s results here.
There has been positive sentiment among investors in the healthcare technology segment, with share prices up 5.9% on average over the last month. Evolent Health is up 7.9% during the same time and is heading into earnings with an average analyst price target of $15.15 (compared to the current share price of $10.30).
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