Wrapping up Q4 earnings, we look at the numbers and key takeaways for the health insurance providers stocks, including Progyny (NASDAQ:PGNY) and its peers.
Upfront premiums collected by health insurers lead to reliable revenue, but profitability ultimately depends on accurate risk assessments and the ability to control medical costs. Health insurers are also highly sensitive to regulatory changes and economic conditions such as unemployment. Going forward, the industry faces tailwinds from an aging population, increasing demand for personalized healthcare services, and advancements in data analytics to improve cost management. However, continued regulatory scrutiny on pricing practices, the potential for government-led reforms such as expanded public healthcare options, and inflation in medical costs could add volatility to margins. One big debate among investors is the long-term impact of AI and whether it will help underwriting, fraud detection, and claims processing or whether it may wade into ethical grey areas like reinforcing biases and widening disparities in medical care.
The 11 health insurance providers stocks we track reported a satisfactory Q4. As a group, revenues beat analysts’ consensus estimates by 2.3% while next quarter’s revenue guidance was in line.
In light of this news, share prices of the companies have held steady as they are up 1.4% on average since the latest earnings results.
Best Q4: Progyny (NASDAQ:PGNY)
Founded in 2008, Progyny (NASDAQ:PGNY) provides fertility and family-building benefits solutions, integrating technology and personalized care to support individuals and employers in managing reproductive healthcare.
Progyny reported revenues of $298.4 million, up 10.6% year on year. This print exceeded analysts’ expectations by 7.6%. Overall, it was a very strong quarter for the company with an impressive beat of analysts’ sales volume estimates and EBITDA guidance for next quarter exceeding analysts’ expectations.
“We're pleased to report that 2024 ended on a strong note, with continued improvement in the pacing of member engagement as compared to what we saw earlier in the year,” said Pete Anevski, Chief Executive Officer of Progyny.
Progyny achieved the biggest analyst estimates beat of the whole group. Unsurprisingly, the stock is up 3.9% since reporting and currently trades at $23.73.
Is now the time to buy Progyny? Access our full analysis of the earnings results here, it’s free.
Cencora (NYSE:COR)
The result of the 2001 merger between AmeriSource Health and Bergen Brunswig, Cencora (NYSE:COR) supplies pharmaceuticals and healthcare services to hospitals, pharmacies, clinics, and other facilities.
Cencora reported revenues of $81.49 billion, up 12.8% year on year, outperforming analysts’ expectations by 5.2%. The business had a very strong quarter with a narrow beat of analysts’ full-year EPS guidance estimates and a decent beat of analysts’ EPS estimates.
However, the results were likely priced into the stock as it’s traded sideways since reporting. Shares currently sit at $253.53.
Is now the time to buy Cencora? Access our full analysis of the earnings results here, it’s free.
Weakest Q4: Molina Healthcare (NYSE:MOH)
Founded in 1980 as a clinic for underserved California residents, Molina Healthcare (NYSE:MOH) provides health insurance to individuals and families who are eligible for government-sponsored programs such as Medicare (elderly) and Medicaid (low-income).
Molina Healthcare reported revenues of $10.5 billion, up 16% year on year, exceeding analysts’ expectations by 1.9%. Still, it was a slower quarter as it posted a significant miss of analysts’ full-year EPS guidance estimates.
As expected, the stock is down 4.3% since the results and currently trades at $303.60.
Read our full analysis of Molina Healthcare’s results here.
Alignment Healthcare (NASDAQ:ALHC)
Founded in 2013, Alignment Healthcare (NASDAQ:ALHC) provides Medicare Advantage plans with a focus on technology such as telemedicine and a proprietary platform that digitizes care coordination and features predictive analytics.
Alignment Healthcare reported revenues of $701.2 million, up 50.7% year on year. This number beat analysts’ expectations by 3.6%. Overall, it was a very strong quarter as it also produced EBITDA guidance for next quarter exceeding analysts’ expectations.
Alignment Healthcare pulled off the fastest revenue growth and highest full-year guidance raise among its peers. The company added 6,800 customers to reach a total of 189,100. The stock is up 16.4% since reporting and currently trades at $15.67.
Read our full, actionable report on Alignment Healthcare here, it’s free.
Cigna (NYSE:CI)
Serving both corporate clients and individual customers, Cigna (NYSE:CI) offers health insurance and pharmacy benefit management services that cover medical, dental, behavioral health, and vision needs.
Cigna reported revenues of $65.65 billion, up 28.4% year on year. This result topped analysts’ expectations by 4.5%. Zooming out, it was a slower quarter as it logged full-year operating income guidance missing analysts’ expectations significantly and a significant miss of analysts’ EPS estimates.
Cigna had the weakest full-year guidance update among its peers. The company added 96,000 customers to reach a total of 17.5 million. The stock is up 1.7% since reporting and currently trades at $308.35.
Read our full, actionable report on Cigna here, it’s free.
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