Why Alignment Healthcare's Shares Dropped Today
Shares of Alignment Healthcare (NASDAQ: ALHC) were down 18% as of Wednesday afternoon, a day after the Medicare Advantage insurer reported fourth-quarter and full-year earnings. The stock fell close to its 52-week low of $7.74. Its 52-week high is $19.17. So far this year, Alignment's shares are down more than 32%.
The company had good news and bad news in its fourth-quarter and year-end report. The positive was that the company's fourth-quarter revenue of $362 million was up 21% year over year and the company said it grew health plan membership in the quarter to 98,400, up 14% over the same period last year. For the year, Alignment posted revenue of $1.434 billion, up 23%.
The negatives were that the company's losses grew in the quarter. Alignment reported a fourth-quarter net loss of $56.9 million, down 19%, equating to an earnings-per-share loss of $0.31. The average estimate of six analysts surveyed by Zacks Investment Research was for a loss of $0.30 per share.
Source Fool.com
