Evolent Health (NYSE:EVH) posted third-quarter results yesterday that beat the earnings consensus on Wall Street but missed revenue estimates.
The Arlington, Virginia-based company reported profits of $2.1 million, or 2¢ per share, on sales of $352.6 million for the three months ended September 30 on a bottom-line gain over Q3 2021 when it reported $13 million in losses. Evolent Health also had 58.5% sales growth year-over-year.
Adjusted to exclude one-time items, earnings per share were 59¢, 49¢ ahead of The Street, where analysts were looking for sales of $356.78 million.
“Our third quarter results were strong across organic growth, margin expansion and product innovation. We also achieved another successful quarter of sales momentum, signing three new operating partnerships, bringing our total new partnership announcements to 13 for the year versus our target of 6-8,” CEO and co-founder Seth Blackley said in a news release.
“In addition, we are seeing sales acceleration of our integrated, value-based specialty proposition with many large health plans around the country,” he continued. “Finally, I’m excited to have promoted Dan McCarthy to president of Evolent, overseeing our specialty business, and I am happy to welcome Kali Beyah as our new chief people and brand officer.”
Evolent Health expects revenue to be in the range of approximately $361 million to $381 million for Q4 and anticipates full-year revenue in the range of $1.33 billion to $1.35 billion.
Shares of EVH were down 8.32% to $26.11 apiece in mid-morning trading. MassDevice‘s MedTech 100 Index – which includes stocks of the world’s largest medical device companies – was down more than 3%.