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Clover Health (CLOV) to Report Q1 Earnings: What's in Store?

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Clover Health Investments, Corp. (CLOV - Free Report) is scheduled to release first-quarter 2022 results on May 9, after the closing bell. In the last reported quarter, the company delivered a negative earnings surprise of 69.2%.

Q1 Estimates

Currently, the Zacks Consensus Estimate for first-quarter revenues is pegged at $815.4 million, indicating an improvement of 307% from the year-ago period, while the consensus mark for the bottom line stands at a loss of 24 cents.

Factors to Note

Per the fourth-quarter 2021 earnings release, lives under Clover Assistant management grew 223% to around 96,000 owing to the introduction of Direct Contracting (in 2022). This momentum is likely to have continued in the first quarter as well and might have contributed to the top-line growth.

In the fourth quarter of 2021, Clover Assistant visits soared 78% on a year-over-year basis, and this trend is likely to have sustained in the first quarter, which in turn might get reflected in the to-be-reported quarter’s results.

In January 2022, Clover Health announced Medicare Advantage (MA) membership growth of over 25% compared to the same at the beginning of 2021.

In December 2021, the company made an announcement that it will provide clinicians using the Clover Assistant access to all-inclusive renal care coordination and services to lend support to disease management among their patients diagnosed with chronic kidney disease (CKD). As part of the program, Clover Health has collaborated with the value-based kidney care provider, Cricket Health, to provide patients comprehensive and personalized kidney care.

In November, Clover Health substantially enhanced the breadth and depth of its provider network across Georgia with the addition of dozens of hospitals, health systems and key provider partners throughout the region.

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

Higher operating expenses may have weighed on the company’s first-quarter 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 0.00%. 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 #2.

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.

Quipt Home Medical Corp. (QIPT - Free Report) has an Earnings ESP of +33.33% and a Zacks Rank of 3. You can see the complete list of today's Zacks #1 Rank stocks here.

Quipt Home Medical’s earnings growth rate for fiscal 2022 is estimated at 62.5%. The company's price-to-cash flow (P/CF) ratio of 7.67 compares favorably with the industry's 13.65.

Haemonetics Corporation (HAE - Free Report) has an Earnings ESP of +0.84% and a Zacks Rank of 3.

Haemonetics' long-term earnings growth rate is estimated at 10%. The company's earnings yield of 5.4% compares favorably with the industry's 0.9%.

HEXO Corp. (HEXO - Free Report) has an Earnings ESP of +33.33% and a Zacks Rank of 3.

HEXO’s estimated earnings growth rate for fiscal 2023 stands at 90.8%. The company's price-to-book (P/B) ratio of 0.39 compares favorably with the industry's 2.32.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.