What happened
Shares of insurance platform SelectQuote (SLQT -3.61%) rose more than 10% in the morning after the company reported earnings results that beat expectations.
So what
SelectQuote is a decades-old insurance platform that helps consumers purchase complex senior health, life, auto, and home insurance policies from a curated panel of the nation's leading insurance carriers.
The company doesn't provide the insurance, but instead matches consumers looking to buy it with insurance carriers. SelectQuote earns commissions from the insurance carriers for the policies it sells on their behalf.
Image source: Getty Images.
In its second fiscal quarter of the year, the company reported a profit of $90.4 million, or $0.55 earnings per share, on total revenue of more than $358 million, which is up 76% and 103%, respectively, from the same quarter of last year. Both net income and revenue easily topped analysts' estimates for the quarter.
Quarterly adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of $129.5 million increased by roughly 88%, compared to the same quarter of last year.
"Our Second Quarter results again demonstrated our strong growth potential, exceeding our internal expectations," CEO Tim Danker said in a statement. "We continue to excel in a fast-growing industry, and we're pleased that our results continue to validate our strategy."
Now what
SelectQuote went public in May 2020, with shares rising more than 30% right off the bat. But since then the stock dipped and has largely been in recovery mode from the pandemic. The positive earnings report could be exactly what the company needs.
Profits continue to grow and management has now raised its guidance for full-year earnings, which is now expected to significantly exceed fiscal year 2020 earnings.
