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Why Evolent Health Shares Fell on Thursday

By Eric Volkman - May 6, 2021 at 5:27PM

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The company beat on Q1 earnings, but ...

What happened

Shares of Evolent Health (EVH 1.54%) declined by 7.7% on Thursday, on a day when the S&P 500 index ended higher by 0.8%. That came in the wake of the company's first-quarter earnings release.

So what

Evolent earned just over $215.1 million in total revenue, down from the $221 million in the same quarter last year. But that exceeded the $212 million collectively anticipated by analysts tracking the stock.

Two medical professionals conferring in a hospital lobby.

Image source: Getty Images.

On the bottom line, the healthcare company posted an adjusted loss of just under $1.2 million ($0.01 per share) -- narrower than the more than $12 million shortfall of the year-ago quarter. On average, those prognosticators were estimating a $0.06 per share loss.

Evolent also proffered revenue and EBITDA guidance for its current quarter and the full fiscal year. For the current quarter's top line, it's forecasting $210 million to $225 million; the consensus analyst estimate of $212 million falls within this range. Similarly, the $865 million anticipated by those folks for the full year lands inside the company's $845 million to $880 million estimate.

As for EBITDA, Evolent believes this will be $10 million to $14 million for the second quarter, and $42 million to $52 million for the year.

Now what

Investors might be worried about future growth, as that revenue projection -- if met -- would represent a notable decline from the $1 billion-plus in revenue Evolent booked in 2020. With a myriad of growing businesses in the healthcare sector to choose from, investors could be moving away from Evolent for now.


Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

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Evolent Health, Inc. Stock Quote
Evolent Health, Inc.
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