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Evolent Health (EVH) Posts Q2 Loss as Expected, Revenues Top
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Arlington, VA-based, Evolent Health, Inc. (EVH - Free Report) , reported second-quarter 2017 loss of 13 cents per share, which was in line with the Zacks Consensus Estimate. The figure improved from a loss of 25 cents in the year-ago quarter.
In the reported quarter revenues increased roughly 89.4% year over year to $107.1 million approximately, outpacing the Zacks Consensus Estimate of $105.0 million.
Quarter Highlights
In the reported quarter, adjusted platform and operations revenue accounted for $102 million or 95% of total adjusted revenue. This represents an increase of $55.8 million or 121% compared with the same quarter last year. The surge was driven primarily by an increase in the number of members on its platform. Number of members rose from approximately 1.4 million as of Jun 30, 2016 to approximately 2.8 million as of Jun 30. The increase of members on the platform was due primarily to the acquisitions as well as the addition of new partners and growth in existing markets. Average per member per month fee for the quarter was $12.23 compared with $11.64 in the same period of the prior year.
Adjusted cost of revenue increased to $66.2 million or 61.6% of adjusted revenue in the reported quarter compared with $32.1 million or 56.9% in the year-ago period. The increase in expense year over year was primarily due to the cost assumed from acquisitions, additional personnel cost and third-party support services across the organization.
Evolent Health, Inc Price, Consensus and EPS Surprise
Evolent Health’s cash and cash equivalents were $100.0 million as of Jun 30, compared with $134.6 million as of Dec 31, 2016. Long-term debt stood at $120.9 million versus $120.3 million at year-end 2016.
Guidance
Evolent Health expects revenue in the range of $103.0 million to $105.0 million for the third quarter of 2017. Adjusted EBITDA is expected to be approximately breakeven. For the full year 2017, the company anticipates revenue to be in the range of $424.0 million to $428.0 million and adjusted EBITDA to be in the range of loss $8.0 million to loss of $4.0 million.
Zacks Rank & Key Picks
Evolent Health has a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader medical sector are Edwards Lifesciences Corporation (EW - Free Report) , Fresenius Medical Care Corporation (FMS - Free Report) and Dextera Surgical Inc. .
Edwards Lifesciences has a long-term expected earnings growth rate of 15.2%. Notably, the stock has a return of 3.4% over the last three months.
Fresenius Medical yielded a strong return of 20.6% over the last one year. The stock has a long-term expected earnings growth rate of 30.5%.
Dextera has a projected sales growth of 54.8% for the current year. The stock promises a long-term expected earnings growth rate of 25%.
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Evolent Health (EVH) Posts Q2 Loss as Expected, Revenues Top
Arlington, VA-based, Evolent Health, Inc. (EVH - Free Report) , reported second-quarter 2017 loss of 13 cents per share, which was in line with the Zacks Consensus Estimate. The figure improved from a loss of 25 cents in the year-ago quarter.
In the reported quarter revenues increased roughly 89.4% year over year to $107.1 million approximately, outpacing the Zacks Consensus Estimate of $105.0 million.
Quarter Highlights
In the reported quarter, adjusted platform and operations revenue accounted for $102 million or 95% of total adjusted revenue. This represents an increase of $55.8 million or 121% compared with the same quarter last year. The surge was driven primarily by an increase in the number of members on its platform. Number of members rose from approximately 1.4 million as of Jun 30, 2016 to approximately 2.8 million as of Jun 30. The increase of members on the platform was due primarily to the acquisitions as well as the addition of new partners and growth in existing markets. Average per member per month fee for the quarter was $12.23 compared with $11.64 in the same period of the prior year.
Adjusted cost of revenue increased to $66.2 million or 61.6% of adjusted revenue in the reported quarter compared with $32.1 million or 56.9% in the year-ago period. The increase in expense year over year was primarily due to the cost assumed from acquisitions, additional personnel cost and third-party support services across the organization.
Evolent Health, Inc Price, Consensus and EPS Surprise
Evolent Health, Inc Price, Consensus and EPS Surprise | Evolent Health, Inc Quote
Financial Condition
Evolent Health’s cash and cash equivalents were $100.0 million as of Jun 30, compared with $134.6 million as of Dec 31, 2016. Long-term debt stood at $120.9 million versus $120.3 million at year-end 2016.
Guidance
Evolent Health expects revenue in the range of $103.0 million to $105.0 million for the third quarter of 2017. Adjusted EBITDA is expected to be approximately breakeven. For the full year 2017, the company anticipates revenue to be in the range of $424.0 million to $428.0 million and adjusted EBITDA to be in the range of loss $8.0 million to loss of $4.0 million.
Zacks Rank & Key Picks
Evolent Health has a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader medical sector are Edwards Lifesciences Corporation (EW - Free Report) , Fresenius Medical Care Corporation (FMS - Free Report) and Dextera Surgical Inc. .
Edwards Lifesciences and Fresenius Medical sport a Zacks Rank #1 (Strong Buy), while Dextera has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Edwards Lifesciences has a long-term expected earnings growth rate of 15.2%. Notably, the stock has a return of 3.4% over the last three months.
Fresenius Medical yielded a strong return of 20.6% over the last one year. The stock has a long-term expected earnings growth rate of 30.5%.
Dextera has a projected sales growth of 54.8% for the current year. The stock promises a long-term expected earnings growth rate of 25%.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look. See the pot trades we're targeting>>