Oscar Health Stock Jumps 4% as Q2 Earnings Exceed Estimates and Guidance Increased

Oscar Health Reports Strong Q2 Earnings and Raises Full-Year Guidance

NEW YORK – Oscar Health, Inc. recently announced better-than-expected earnings for the second quarter, leading to a 4% increase in its shares during after-hours trading.

For the quarter ending June 30, 2024, the healthcare technology company reported adjusted earnings per share of $0.20, surpassing analyst predictions of $0.16. The company generated revenue of $2.22 billion, which was slightly higher than the anticipated $2.21 billion and represented a significant 46% increase compared to the same period last year.

Oscar improved its Medical Loss Ratio by 90 basis points year-over-year, reaching 79.0%, while its Selling, General and Administrative (SG&A) Expense Ratio decreased by 260 basis points to 19.6%. The company also achieved net income of $56.2 million, improving by $71.7 million from the previous year’s quarter.

CEO Mark Bertolini noted, "Oscar reported strong second quarter results, closing out the best six months in the company’s history. We continued to report robust revenue growth, improved operating margin, and strong bottom line performance."

Given its strong performance in the first half of the year, Oscar has updated its guidance for the full year of 2024. The company now anticipates revenue in the range of $9.0 billion to $9.1 billion, an increase from its earlier forecast of $8.3 billion to $8.4 billion, and above the $8.6 billion anticipated by analysts. Additionally, Oscar raised its adjusted EBITDA guidance to between $160 million and $210 million, up from the previous range of $125 million to $175 million.

The company expects its full-year SG&A Expense Ratio to decrease further to between 19.75% and 20.25%, while projecting a slightly higher Medical Loss Ratio of 80.5% to 81.5%.

In terms of performance for the quarter, Oscar’s adjusted EBITDA was $104.1 million, reflecting an improvement of $68.6 million year-over-year. The company’s robust results and updated outlook indicate it remains on course to achieve its goal of adjusted EBITDA profitability for the full year.

This article was generated with the support of AI and reviewed by an editor.