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Clover Health (CLOV) to Report Q3 Earnings: What's in Store?

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Clover Health Investments, Corp. (CLOV - Free Report) is scheduled to release third-quarter 2021 results on Nov 8, after the closing bell. In the last reported quarter, the company delivered a negative earnings surprise of 164.7%.

Q3 Estimates

Currently, the Zacks Consensus Estimate for third-quarter revenues is pegged at $306.1 million, while the consensus mark for the bottom line stands at a loss of 31 cents.

Factors to Note

Per the second-quarter 2021 earnings call, introduction of Direct Contracting more than doubled Clover Health’s revenues as well as lives under Clover Assistant management. This momentum is likely to have continued in the third quarter as well, thereby might have contributed to the top-line growth.

In September, Clover Health announced that it will offer in-home COVID-19 vaccinations to Medicare Advantage members. The company collaborated with healthcare logistics and services platform — MedArrive — to start the vaccination program in New Jersey.

In the same month, Clover Health inked a deal with athenahealth, Inc. through the latter’s Marketplace program. Being part of the athenahealth Marketplace, the Clover Assistant application has been made available to Clover-contracted physicians in athenahealth’s growing network of healthcare providers to provide them clinical decision support, without the need of a transition to risk-based contracts.

In August, the company made an announcement of supporting FHIR (Fast Healthcare Interoperability Resources) in the Clover Assistant.

In the same month, the company entered into a strategic partnership with ValueH, wherein the latter will lend support to Accountable Care Organizations (ACOs) and Management Services Organizations (MSOs) participating in Clover Health’s Direct Contracting Entity starting in 2022.

These developments are likely to have positively impacted the company’s third-quarter performance.

In the second quarter of 2021, Clover Health witnessed a substantial increase in salaries and benefits plus general and administrative expenses, primarily due to higher stock-based compensation expenses. This trend is likely to have sustained in the to-be-reported quarter, consequently might have weighed on the quarterly performance.

What Our Quantitative Model Suggests

Per our proven model, a combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. This is not the case here as you will see.

Earnings ESP: Clover Health has an Earnings ESP of +12.90%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: The company carries a Zacks Rank #4 (Sell).

Stocks Worth a Look

Here are some medical stocks worth considering as these have the right combination of elements to post an earnings beat this quarter.

Insulet Corporation (PODD - Free Report) has an Earnings ESP of +15.79% and a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Canopy Growth Corporation (CGC - Free Report) has an Earnings ESP of +26.83% and a Zacks Rank of 3.

Becton, Dickinson and Company (BDX - Free Report) has an Earnings ESP of +1.36% and a Zacks Rank of 3.

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