What happened?
Shares of Evolent Health (EVH -3.21%) are rising sharply on Friday after the company announced better than expected fourth-quarter and full-year financial results. Evolent Health's stock was up by 6.6% as of 1:24 p.m. EST.
So what
During its fourth-quarter 2020 that ended on Dec. 31, Evolent Health recorded revenue of $271.9 million, representing a 15% year-over-year increase. The company's top line handily beat the Wall Street average estimate of $261.55 million. Meanwhile, the company recorded a net loss based on generally accepted accounting principles (GAAP) of $14.6 million, compared to the net loss of $198.1 million it recorded during the prior-year quarter. Analysts are often more interested in a company's non-GAAP (adjusted) bottom line, however.
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On that front, Evolent Health reported an adjusted net loss of $598 thousand and an adjusted net loss per share of $0.01, compared to the adjusted loss and adjusted loss per share of $5.8 million and $0.07 it recorded during the year-ago period. On average, analysts expected the company's non-GAAP loss per share to be $0.05. For the fiscal year 2020, Evolent Health recorded revenue of $1.02 billion and an adjusted loss per share of $0.21. These numbers compare favorably to the revenue of $1.01 billion and non-GAAP loss per share of $0.24 analysts expected.
Now what
Posting revenue and earnings that top analyst estimates is a great way for a company to get the attention of investors. And since this happened for Evolent Health during a year of unprecedented challenges, it is all the more impressive. Thus, it isn't surprising to see investors bidding up this healthcare stock today.
