What happened
Healthcare administrative-services provider Evolent Health (EVH -2.67%) was a standout stock on Tuesday. The company's shares were floating nearly 5% higher as of midafternoon, eclipsing the gains of even the frothy S&P 500 index on the day. There was a very good reason for this.
So what
Evolent's second-quarter results, released after market hours on Monday, showed that the company booked just under $320 million for the period, which was a robust 44% higher than the year-ago quarter. Even more encouraging, Evolent flipped to an adjusted net profit of slightly more than $9.4 million ($0.10 per share) against the year-ago loss of over $1.9 million.
Analysts tracking the stock were expecting that flip, but not to that degree. On average, they were modeling $0.05 per share in adjusted net profit. Evolent also beat on revenue, as the prognosticators were collectively anticipating the company would take in just shy of $299 million.
In its earnings release, CEO Seth Blackley said, "Our financials reflect both an increasing number of successful partnerships with our payer and provider clients as well as deeper and broader relationships across our solutions."
So far this year, the healthcare services company has added 10 new partnerships, topping its annual goal of six to eight. This is the second year in a row Evolent has achieved this feat.
Now what
Evolent also proffered guidance for all of 2022. It's expecting revenue of roughly $1.32 billion to $1.36 billion, and adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) to land at $95 million to $105 million. By comparison, in 2021 revenue was $908 million and adjusted EBITDA was just over $66 million.
