Alignment Healthcare (ALHC) Reports Earnings Tomorrow: What To Expect

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Health insurance company Alignment Healthcare (NASDAQ: ALHC) will be announcing earnings results this Thursday afternoon. Here’s what to expect.

Alignment Healthcare beat analysts’ revenue expectations last quarter, reporting revenues of $1.24 billion, up 33.3% year on year. It was a satisfactory quarter for the company, with a beat of analysts’ EPS estimates but EBITDA guidance for next quarter missing analysts’ expectations. It added 48,500 customers to reach a total of 284,800.

Is Alignment Healthcare a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.

This quarter, the market is expecting Alignment Healthcare’s revenue to grow 29% year on year, slowing from the 49% increase it recorded in the same quarter last year.

Alignment Healthcare Total Revenue

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Alignment Healthcare has a history of exceeding Wall Street’s expectations.

Looking at Alignment Healthcare’s peers in the health insurance providers segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Centene delivered year-on-year revenue growth of 9.9%, beating analysts’ expectations by 13.1%, and UnitedHealth reported flat revenue, topping estimates by 1.2%. UnitedHealth traded up 1.8% following the results.

Read our full analysis of Centene’s results here and UnitedHealth’s results here.

There has been positive sentiment among investors in the health insurance providers segment, with share prices up 4.4% on average over the last month. Alignment Healthcare is down 18.5% during the same time and is heading into earnings with an average analyst price target of $24.92 (compared to the current share price of $18.95).

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