AUSTIN, Texas - Agilon Health Inc. (NYSE: AGL) shares climbed 2.4% following the announcement of its first-quarter earnings, which exceeded analysts' expectations.
The company reported an adjusted EPS of $0.01, surpassing the consensus estimate that predicted a loss of $0.01. However, revenue for the quarter was slightly below expectations at $1.6 billion, compared to the anticipated $1.61 billion.
In the first quarter of 2024, Agilon Health saw a significant 52% increase in revenue compared to the same period last year, rising from $1.05 billion to $1.6 billion. This growth was accompanied by a 43% increase in Medicare Advantage membership, which reached 523,000 members. The total number of members on the Agilon platform grew to 654,000.
Despite the revenue shortfall, the market responded positively to the earnings beat, with the company's stock rising. Agilon Health's CEO, Steve Sell, attributed the strong quarter to the company's execution of its performance action plan, which is focused on driving profitability and enhancing operating efficiency.
"Our first quarter results were in-line with our guidance," said Sell. "We continue to make tangible progress executing our performance action plan. As payors adjust to the current funding environment for Medicare Advantage, we remain well positioned as our value proposition to primary care doctors and payors is increasingly important and well-recognized."
For the second quarter of 2024, Agilon Health provided guidance for revenue between $1.55 billion and $1.57 billion, which is below the consensus estimate of $1.6 billion. For the full year, the company expects revenue to be between $6.125 billion and $6.175 billion, also lower than the consensus estimate of $6.396 billion.
The company's continued progress on its performance action plan includes refining payer relationships, expanding support for new primary care physicians, and improving data visibility and analytics. These actions are anticipated to support growth in adjusted EBITDA in 2024 and beyond.
Agilon Health maintains its full-year 2024 guidance for Medical Margin and Adjusted EBITDA, signaling confidence in its strategic direction and operational improvements. The company's capital position remains strong, with a balance sheet showing $426 million in cash, cash equivalents, and marketable securities, and total debt of $37 million as of March 31, 2024.
Investors are encouraged by the company's earnings beat and the strategic initiatives underway, as reflected in the positive stock movement. Agilon Health continues to focus on empowering physicians to transform healthcare in communities, with a growing network that now includes over 3,000 primary care physicians.
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