What happened
Among the healthier stocks on a generally down Wednesday for the market was Oscar Health (OSCR -1.85%). The next-generation health insurer's shares were rocketing more than 12% higher in mid-afternoon trading, providing a sharp contrast to the slumping S&P 500 index. Investors were clearly signalling their approval of Oscar's latest earnings release.
So what
For its second quarter, Oscar's revenue totaled $1.52 billion, which was nearly 50% higher year over year. This was on the back of a 48% rise in earned premiums. The insurance company also saw a dramatic improvement on the bottom line, with its net loss narrowing considerably to $15.5 million ($0.07) per share from the year-ago deficit of over $112 million.
Analysts tracking the stock had modest expectations. On average, they were estimating Oscar's revenue would come in at only $1.38 billion, and its net loss would be $0.22 per share.
In its earnings release, Oscar quoted CEO Mark Bertolini as saying that "Our strong second quarter results demonstrate that our pricing discipline, renewed operational focus, and solid execution are driving meaningful impact across our business."
The company also announced that it is getting a new CFO. This is its current chief transformation officer R. Scott Blackley, who will take up his new role next Monday, Aug. 14.
Now what
Buoyed by those strong quarterly numbers, Oscar reaffirmed its existing guidance for the entirety of 2023. Its non-GAAP (adjusted) earnings before interest, taxes, depreciation, and amortization (EBITDA) should be a loss of $75 million to $175 million. The company did not proffer revenue or bottom-line forecasts.
