Alignment Healthcare Q3 revenue beats; FY adjusted core profit outlook lowered
Overview
US Medicare Advantage insurer's Q3 revenue grew 36.7% yr/yr, beating analyst expectations
Q3 adjusted EBITDA declined 32.8% yr/yr and missed analyst estimates
Company lowered full-year adjusted gross profit and adjusted EBITDA guidance due to higher medical costs
Outlook
Company expects Q4 revenue of $1.316 bln
Alignment Healthcare forecasts 2026 full-year revenue of $5.245 bln
Company lowers 2026 full-year adjusted gross profit and adjusted EBITDA guidance
Result Drivers
MEMBERSHIP GROWTH - Co said Q3 revenue growth was driven by a 31.2% yr/yr increase in health plan membership
HIGHER MEDICAL COSTS - Co attributed lower adjusted gross profit and EBITDA to increased medical costs, including elevated appeals, disputes, catastrophic cases and skilled nursing
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Revenue | Beat | $1.36 bln | $1.31 bln (11 Analysts) |
Q3 Net Loss | $8.1 mln | ||
Q3 Adjusted EBITDA | Miss | $21.8 mln | $22.80 mln (13 Analysts) |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 11 "strong buy" or "buy", 5 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the managed healthcare peer group is "buy"
Wall Street's median 12-month price target for Alignment Healthcare, Inc. is $11.50, about 40.6% above its October 28 closing price of $8.18
The stock recently traded at 27 times the next 12-month earnings vs. a P/E of 77 three months ago
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)