AUSTIN - Agilon Health Inc. (NYSE: AGL) reported a significant increase in its fourth quarter revenue, which soared 72% to $1.06 billion compared to the same quarter last year, outpacing the consensus estimate of $1.02 billion.
Despite the impressive revenue growth, the company's stock fell nearly 7% in aftermarket trading due to an earnings miss. The adjusted earnings per share (EPS) for the quarter was reported at -$0.41, which was $0.17 short of the analyst estimate of -$0.24.
The company's Medicare Advantage membership saw a substantial increase of 68% to 388,400, contributing to the revenue growth. However, the fourth quarter was impacted by higher medical costs, which the company attributes to macroeconomic dynamics. These increased costs have led to a revised guidance for 2024, with Agilon Health projecting continued trends of elevated medical expenses.
For the first quarter of 2024, Agilon Health expects revenue to be between $1.605 billion and $1.63 billion, slightly above the consensus estimate of $1.596 billion. The full-year 2024 revenue guidance is forecasted to range from $6.35 billion to $6.42 billion, with the midpoint of this range falling just below the consensus estimate of $6.381 billion.
Steve Sell, the chief executive officer of Agilon Health, commented on the results, stating, "While near-term dynamics are negatively affecting our financial results, demand for our platform and the fundamental drivers of our business remain strong as we continue to deliver significant value to patients, payors, and our PCP partners."
The company's action plan to improve performance includes expanding support for new primary care physicians, refining payor partnerships, and enhancing data analytics. Agilon Health anticipates adding at least 60,000 Medicare Advantage members across 5 physician groups for the Class of 2025, indicating a measured approach to growth.
Investors reacted negatively to the earnings miss, with the stock experiencing a significant drop. The company's performance plan and positive revenue guidance for the coming quarters suggest efforts to address the challenges and capitalize on the strong demand for its platform.
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