Health insurance company Clover Health (NASDAQ:CLOV) will be reporting results this Wednesday afternoon. Here’s what investors should know.
Clover Health beat analysts’ revenue expectations last quarter, reporting revenues of $487.7 million, up 44.7% year on year. It was a strong quarter for the company, with an impressive beat of analysts’ revenue estimates and EPS in line with analysts’ estimates. It added 4,577 customers to reach a total of 113,803.
Is Clover Health 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 Clover Health’s revenue to grow 54.6% year on year, improving from the 33.3% increase it recorded in the same quarter last year.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Clover Health has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Clover Health’s peers in the health insurance providers segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Centene delivered year-on-year revenue growth of 7.1%, beating analysts’ expectations by 6.2%, and Elevance Health reported revenues up 1.5%, topping estimates by 2.4%. Centene traded up 24.1% following the results while Elevance Health was also up 5.5%.
Read our full analysis of Centene’s results here and Elevance Health’s results here.
There has been positive sentiment among investors in the health insurance providers segment, with share prices up 5.7% on average over the last month. Clover Health is up 41.5% during the same time and is heading into earnings with an average analyst price target of $2.82 (compared to the current share price of $2.65).
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