Please ensure Javascript is enabled for purposes of website accessibility

Why MultiPlan Stock Is Soaring Today

By Keith Speights - May 13, 2021 at 12:21PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The company handily beat expectations with its Q1 results.

What happened

Shares of MultiPlan (MPLN -0.53%) were soaring 19.6% higher as of 11:35 a.m. EDT on Thursday. The big gain came after the healthcare technology solutions provider announced better-than-expected first-quarter results before the market opened.

So what

MultiPlan reported Q1 revenue of $254.9 million, up 1.1% year over year and well above the consensus analysts' estimate of $248.5 million. The company posted net income of $45.9 million, or $0.07 per share. This result handily beat the average analysts' earnings estimate of $0.01 per share. It also reflected significant improvement from the net loss of $2.6 million, or $0.01 per share, in the prior-year period. 

$1 bill folded into an arrow pointing up

Image source: Getty Images.

The company's performance was especially notable considering that its customers, including health insurers, continued to face headwinds from the COVID-19 pandemic. However, MultiPlan's bottom line was boosted by a $40.4 million change in the fair value of private placement warrants and unvested founder shares. 

Now what

Probably the best news of all in MultiPlan's Q1 update was its guidance. The company expects Q2 revenue will be between $260 million and $275 million, higher than the consensus analysts' estimate of $249 million. It also looks for full-year revenue of between $1.04 billion and $1.1 billion. The low end of that range is above the average analysts' revenue estimate of $1.03 billion.

Keith Speights 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.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

MultiPlan Corporation Stock Quote
MultiPlan Corporation
MPLN
$3.79 (-0.53%) $0.02

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
397%
 
S&P 500 Returns
128%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 08/19/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.