Evolent Health Exceeds EPS Expectations: A Deep Dive into 2024 Full Year Earnings

• Revenue reached $2.55 billion, marking a 30% increase from the previous fiscal year.

• The company posted a net loss of $93.5 million, which is a 34% improvement compared to last year.

• Loss per share improved to $0.81, down from $1.28 in the previous year.

All figures above reflect the trailing 12-month period.

Revenue matched analyst expectations, and earnings per share exceeded estimates by 2.5%.

Over the past year, Pharmacy Services was the sole revenue driver, contributing $2.55 billion. However, the cost of sales was significant at $2.19 billion, which is 86% of the total revenue. The largest expense came from General & Administrative costs, totaling $246.6 million or 54% of overall expenses.

Looking ahead, revenue is expected to grow at an average rate of 6.9% per year over the next three years. This is slower than the 9.7% growth forecast for the U.S. Healthcare Services industry.

The company’s shares have increased by 4.1% over the past week.

However, there’s one cautionary sign regarding Evolent Health that potential investors should consider.