Evolent Health Q4 Top-Line Beats Expectation, Analyst Points To Visible Growth Outlook

  • Evolent Health Inc EVH reported Q4 adjusted EPS of $0.10, missing the consensus of $0.16, compared to $0.08 a year ago.
  • Revenues increased 54% Y/Y to $382.43 million, beating the consensus of $372.93 million.
  • Total Lives on the Platform of 20.6 million as of Dec. 31, 2022, compared to 17.7 million a year ago.
  • Total cases managed during the quarter within surgical management and advanced care planning totaled 15.7k, yielding an average per case revenue of $2.8k.
  • Guidance: Evolent Health sees Q1 revenue of $420-$440 million and FY23 sales of $1.92-$1.96 billion, versus the consensus estimate of $410.36 million and $1.76 billion, respectively.
  • William Blair writes that Evolent Health remains well-positioned for robust and profitable growth. It maintains an Outperform rating and reiterates EVH shares as its top pick for 2023.
  • The analyst says that the management highlighted its goal to hit roughly $300 million in run-rate adjusted EBITDA by the end of 2024—driven by solid performance in the core business, cost discipline, and synergies and growth associated with recent transactions.
  • The analyst views EVH's 2023 sales multiple of 2x and EBITDA multiple of 20x as an attractive risk/reward level, given the company's unique market position, large and growing addressable market, and still-robust longer-term growth outlook. 
  • Price Action: EVH shares are up 10.13% at $34.78 on the last check Thursday.
Market News and Data brought to you by Benzinga APIs
Actual EPS
EPS Surprise
Actual Rev
Rev Surprise
Posted In: Analyst ColorEarningsNewsGuidanceHealth CareReiterationAnalyst RatingsMoversGeneralBriefswhy it's moving
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!