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Why Evolent Health Stock Popped Wednesday

By Daniel Sparks - Nov 6, 2019 at 1:03PM

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The health information services company is optimistic about 2020.

What happened

Shares of Evolent Health ( EVH -1.17% ), a healthcare information services company, jumped on Wednesday, rising as much as 19.6%. As of 12:27 p.m. EST, the stock was up 14.3%.

The stock's gain followed Evolent's third-quarter results and an announcement that the company has agreed to provide services to Maryland Physicians Care MCO.

A chart showing a stock price moving higher.

Image source: Getty Images.

So what

Evolent announced revenue of $220.1 million, up 46.8% year over year. The company's non-GAAP (adjusted) loss per share for the period was $0.09 -- wider than a $0.04 loss in the same period last year.

Evolent also announced a new partnership with Maryland Physicians Care MCO that will support Medicaid operations for more than 200,000 beneficiaries.

Now what

Particularly encouraging were CEO Frank Williams' comments on recent new partners and the company's outlook. "With seven new partners, as well as a strong pipeline and renewal environment, we have a high level of visibility for top-line growth and margin expansion as we head into 2020," said Williams in the company's third-quarter earnings release.

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