Yahoo Finance Results: Oscar Health, Inc. Beat Earnings Expectations And Analysts Now Have New Forecasts
As you might know, Oscar Health, Inc. (NYSE:OSCR) just kicked off its latest quarterly results with some very strong numbers. The company beat forecasts, with revenue of US$2.2b, some 2.2% above estimates, and statutory earnings per share (EPS) coming in at US$0.20, 28% ahead of expectations. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.
See our latest analysis for Oscar Health
Taking into account the latest results, the most recent consensus for Oscar Health from four analysts is for revenues of US$9.03b in 2024. If met, it would imply a sizeable 25% increase on its revenue over the past 12 months. Earnings are expected to tip over into lossmaking territory, with the analysts forecasting statutory losses of -US$0.01 per share in 2024. Before this earnings report, the analysts had been forecasting revenues of US$8.75b and earnings per share (EPS) of US$0.028 in 2024. Yet despite a modest lift to revenues, the analysts are now forecasting a loss instead of a profit, which looks like a reduction in sentiment after the latest results.
There was no major change to the consensus price target of US$26.80, with growing revenues seemingly enough to offset the concern of growing losses. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Oscar Health, with the most bullish analyst valuing it at US$30.00 and the most bearish at US$21.00 per share. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.
Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. We can infer from the latest estimates that forecasts expect a continuation of Oscar Health'shistorical trends, as the 56% annualised revenue growth to the end of 2024 is roughly in line with the 51% annual growth over the past three years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 5.2% annually. So it's pretty clear that Oscar Health is forecast to grow substantially faster than its industry.
The Bottom Line
The biggest low-light for us was that the forecasts for Oscar Health dropped from profits to a loss next year. Happily, they also upgraded their revenue estimates, and are forecasting them to grow faster than the wider industry. The consensus price target held steady at US$26.80, with the latest estimates not enough to have an impact on their price targets.
With that in mind, we wouldn't be too quick to come to a conclusion on Oscar Health. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Oscar Health going out to 2026, and you can see them free on our platform here..
Even so, be aware that Oscar Health is showing 2 warning signs in our investment analysis , you should know about...
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
