Latest news with #ALHC
Yahoo
16-05-2025
- Business
- Yahoo
ALHC Q1 Earnings Call: Membership Growth and Margin Expansion Drive Upbeat Outlook
Health insurance company Alignment Healthcare (NASDAQ:ALHC) announced better-than-expected revenue in Q1 CY2025, with sales up 47.5% year on year to $926.9 million. The company expects next quarter's revenue to be around $957.5 million, close to analysts' estimates. Its non-GAAP profit of $0.05 per share was significantly above analysts' consensus estimates. Is now the time to buy ALHC? Find out in our full research report (it's free). Revenue: $926.9 million vs analyst estimates of $888.1 million (47.5% year-on-year growth, 4.4% beat) Adjusted EPS: $0.05 vs analyst estimates of -$0.07 (significant beat) Adjusted EBITDA: $20.18 million vs analyst estimates of $4.4 million (2.2% margin, significant beat) The company lifted its revenue guidance for the full year to $3.79 billion at the midpoint from $3.75 billion, a 1.2% increase EBITDA guidance for the full year is $49 million at the midpoint, above analyst estimates of $47.1 million Operating Margin: -0.6%, up from -6.5% in the same quarter last year Free Cash Flow was $8.36 million, up from -$17.36 million in the same quarter last year Customers: 217,500, up from 189,100 in the previous quarter Market Capitalization: $2.95 billion Alignment Healthcare began 2025 with a notable increase in membership and year-over-year revenue, propelled by its ability to manage medical costs and scale its clinical care model. CEO John Kao credited the company's approach to serving seniors, particularly through care coordination for complex and dually eligible populations, as key to its success. Kao emphasized, "Our model combines the product control and data visibility of a health plan, clinical insights of a modern technology platform, medical management expertise of a care delivery organization and member experience of a consumer-first company." Looking forward, management raised full-year revenue and profit guidance, citing strong enrollment momentum and favorable industry dynamics. CFO Thomas Freeman highlighted the company's operational leverage and prudent approach to medical and pharmacy cost trends. He noted that Alignment plans to channel some early-year gains into member engagement and provider partnerships, aiming to build a durable growth platform as the Medicare Advantage landscape continues to evolve. Alignment Healthcare's management attributed the first quarter's growth to robust membership gains and strong execution in medical cost management. The following insights emerged from their remarks: Membership Expansion: The company grew membership by approximately 32%, with significant gains both in California and ex-California markets. Management pointed to the scalability of its clinical model and care coordination capabilities as core drivers. Clinical Model Scaling: The scaling of the AVA (Alignment's technology-enabled care model) enabled improved identification and engagement of high-risk seniors. This allowed for proactive care management, especially for dually eligible and chronically ill members, which management believes sets Alignment apart. Medical Cost Control: Alignment reported better-than-expected improvement in its medical benefit ratio (MBR), highlighting effective inpatient utilization management and favorable prior-year reserve releases. Management noted that these trends supported margin expansion despite rapid top-line growth. Strategic Technology Investment: Ongoing advances in the AVA platform are targeted at automating member experience and optimizing care outcomes. Management described a focus on efficacy and adoption rates of AVA modules, with plans to double down on those delivering measurable value. Leadership Transition: The company announced the transition of its long-serving CFO Thomas Freeman to a strategic advisor role, with Jim Head, a veteran healthcare finance executive, stepping in as the new CFO. Management framed this as a step to support Alignment's next phase of growth and scaling. Management outlined a constructive outlook for 2025, driven by membership growth, operational efficiencies, and continued investments in technology and partnerships. The main themes shaping guidance are: Provider Collaboration Focus: Management plans to deepen long-term partnerships with providers, especially to better serve high-need seniors. These collaborations are expected to support both growth and cost control efforts. Technology and Data Leverage: Continued investment in the AVA platform aims to advance clinical quality and member experience, with the goal of automating and personalizing care at scale. Management believes this will further distinguish Alignment in a competitive Medicare Advantage market. Regulatory and Competitive Factors: Management highlighted the impact of new Medicare Advantage payment rates and risk model changes, noting that Alignment's high plan quality ratings and efficient cost structure position it to benefit relative to some competitors. However, they acknowledged ongoing uncertainties regarding policy changes and market behavior. Ryan Daniels (William Blair): Asked about plans for expanding provider partnerships and possibly offering technology solutions externally. Management indicated that, while expansion is underway, any move into external enablement will be approached cautiously and only if it is sustainable. Michael Ha (Baird): Inquired about the drivers behind medical loss ratio outperformance and the potential pull-forward of earnings from Part D changes. Management clarified that Part D timing was a minor factor and that broader utilization trends and reserves management were more significant. Jessica Tassan (Piper Sandler): Queried about competitive changes in California and how Alignment will prepare its salesforce for increased rivalry. Management said it feels well-positioned due to partnership strengths and does not view smaller competitors as a long-term threat. Whit Mayo (Leerink Partners): Sought clarity on Alignment's risk adjustment revenue processes for new members and visibility on reimbursement. Management explained its conservative approach, booking revenue based on actual payments to avoid surprises. Joanna Gajuk (Bank of America): Asked if further Medicare Advantage rate changes could be a headwind or opportunity for market share. Management stated that its business model is designed to adapt to either environment, emphasizing focus on cost and quality. In the coming quarters, the StockStory team will be monitoring (1) the scalability of Alignment's AVA technology platform in new and existing markets, (2) the company's ability to sustain membership growth while preserving or improving margins, and (3) further developments in provider partnerships and regulatory policy changes affecting Medicare Advantage. Execution on these priorities will be central to evaluating Alignment's trajectory. Alignment Healthcare currently trades at a forward EV-to-EBITDA ratio of 51.8×. Should you load up, cash out, or stay put? Find out in our free research report. Donald Trump's victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs. While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 176% over the last five years. Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today. 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Yahoo
03-05-2025
- Business
- Yahoo
Why Alignment Healthcare, Inc. (ALHC) Went Down On Friday
We recently published a list of . In this article, we are going to take a look at where Alignment Healthcare, Inc. (NASDAQ:ALHC) stands against other Friday's worst performers. Wall Street's major indices ended the trading week on a strong note, clocking in robust gains as investors cheered better-than-expected non-farm payrolls last month while digesting more corporate earnings results. The tech-heavy Nasdaq led the rally among all major indices, finishing up 1.51 percent. The S&P 500 clocked in a 1.47-percent gain, while the Dow Jones grew by 1.39 percent. Despite the broader market optimism, 10 companies managed to register declines amid dismal earnings performance in the first quarter of the year. In this article, let us explore Friday's 10 worst performers and the reasons behind their decline. To come up with the list, we considered only the stocks with a $2-billion market capitalization and $5-million trading volume. A doctor holding a clipboard talking to an elderly patient in a Medicare Advantage healthcare facility. Alignment Healthcare, Inc. (NASDAQ:ALHC) Alignment Healthcare dropped its share prices by 7.39 percent on Friday to finish at $15.53 apiece as investors immediately booked profits after a surge during the intra-day session, supported by its impressive earnings performance in the first quarter of the year. In a statement, Alignment Healthcare, Inc. (NASDAQ:ALHC) said that it narrowed its net loss by 80 percent to $9.35 million from $46.5 million in the same period last year. Revenues increased by 47 percent to $927 million from $629 million year-on-year. Looking ahead, the company said that it is gunning for revenues between $950 million and $965 million in the second quarter of the year, to between $3.77 billion and $3.8 billion in the full-year period. Adjusted EBITDA is also expected to settle at $10 to $18 million in the second quarter, and to $38 to $60 million in full-year 2025. 'By staying focused on quality, clinical outcomes, and member experience, we exceeded expectations across all key measures. With a strong start to the year and momentum building, we're confident in our ability to scale with purpose and deliver on our mission of Medicare Advantage done right,' said Alignment Healthcare, Inc. (NASDAQ:ALHC) CEO John Kao. Overall, ALHC ranks 9th on our list of Friday's worst performers. While we acknowledge the potential of ALHC as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than ALHC but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
Yahoo
23-04-2025
- Business
- Yahoo
Is Alignment Healthcare Inc (ALHC) The Top Falling Stock with Unusual Volume?
We recently published a list of . In this article, we are going to take a look at where Alignment Healthcare Inc (NASDAQ:ALHC) stands against other top falling stocks with unusual volume. Uncertainty around tariffs and macroeconomic conditions has dented investor confidence, resulting in stock prices falling. While some stocks have come under pressure due to the above two reasons, others have simply followed the market direction or have dipped for company-specific reasons. Regardless of the reasons for stocks going down, falling stocks provide an opportunity for fresh investors to get in at good prices. Once the risks subside, these stocks usually recover quickly as well. We decided to uncover these stocks and see if it makes sense to put money in them to take advantage of the ongoing market turmoil. To come up with our list of top 20 stocks falling with unusual volume, we looked at stocks over $300 million in market cap, their one-week performance, and used relative volume to detect the unusual volume activity. Relative volume compares the daily volume to the three-month average trading volume of the stock, making it easy to detect spikes in volume. These spikes usually signal something important is happening, which, when combined with falling prices, becomes a red flag that investors can't ignore. A doctor holding a clipboard talking to an elderly patient in a Medicare Advantage healthcare facility. Alignment Healthcare Inc (NASDAQ:ALHC) is a consumer-centric healthcare platform that provides a customized healthcare experience to fulfill the requirements of seniors. It offers its personalized healthcare through Medicare Advantage plans. The company's stock is down 7.79% in a week on a relative volume of 2.34. A few days ago, Baird analyst Michael Ha recommended the stock as a top pick. He also upgraded the firm with an Outperform rating and a raised price target of $22 from $17. Ha believes that due to the company's domestic Medicare Advantage and prescription drug plan focus, it is protected from potential tariff effects. He also highlighted potential headwinds: 'We expect companies to outperform 1Q, but we do not expect guidance raises as we believe companies will maintain 2025G conservatism/cushion given potential Part D and macro headwinds that may evolve later this year.' Despite rapid growth over the past few years, Alignment Healthcare Inc (NASDAQ:ALHC) still generates substantial net losses. In 2024, the firm recorded a net loss of $128 million. It managed to improve its operating cash flows in the last three years, going from negative to positive. However, the company is still in the early stages of attaining consistent and long-term profitability. Overall, ALHC ranks 12th on our list of top falling stocks with unusual volume. While we acknowledge the potential of ALHC as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than ALHC but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock. READ NEXT: and . Disclosure: None. This article is originally published at . Sign in to access your portfolio
Yahoo
22-04-2025
- Business
- Yahoo
Is Alignment Healthcare Inc (ALHC) The Top Falling Stock with Unusual Volume?
We recently published a list of . In this article, we are going to take a look at where Alignment Healthcare Inc (NASDAQ:ALHC) stands against other top falling stocks with unusual volume. Uncertainty around tariffs and macroeconomic conditions has dented investor confidence, resulting in stock prices falling. While some stocks have come under pressure due to the above two reasons, others have simply followed the market direction or have dipped for company-specific reasons. Regardless of the reasons for stocks going down, falling stocks provide an opportunity for fresh investors to get in at good prices. Once the risks subside, these stocks usually recover quickly as well. We decided to uncover these stocks and see if it makes sense to put money in them to take advantage of the ongoing market turmoil. To come up with our list of top 20 stocks falling with unusual volume, we looked at stocks over $300 million in market cap, their one-week performance, and used relative volume to detect the unusual volume activity. Relative volume compares the daily volume to the three-month average trading volume of the stock, making it easy to detect spikes in volume. These spikes usually signal something important is happening, which, when combined with falling prices, becomes a red flag that investors can't ignore. A doctor holding a clipboard talking to an elderly patient in a Medicare Advantage healthcare facility. Alignment Healthcare Inc (NASDAQ:ALHC) is a consumer-centric healthcare platform that provides a customized healthcare experience to fulfill the requirements of seniors. It offers its personalized healthcare through Medicare Advantage plans. The company's stock is down 7.79% in a week on a relative volume of 2.34. A few days ago, Baird analyst Michael Ha recommended the stock as a top pick. He also upgraded the firm with an Outperform rating and a raised price target of $22 from $17. Ha believes that due to the company's domestic Medicare Advantage and prescription drug plan focus, it is protected from potential tariff effects. He also highlighted potential headwinds: 'We expect companies to outperform 1Q, but we do not expect guidance raises as we believe companies will maintain 2025G conservatism/cushion given potential Part D and macro headwinds that may evolve later this year.' Despite rapid growth over the past few years, Alignment Healthcare Inc (NASDAQ:ALHC) still generates substantial net losses. In 2024, the firm recorded a net loss of $128 million. It managed to improve its operating cash flows in the last three years, going from negative to positive. However, the company is still in the early stages of attaining consistent and long-term profitability. Overall, ALHC ranks 12th on our list of top falling stocks with unusual volume. While we acknowledge the potential of ALHC as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than ALHC but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock. READ NEXT: and . Disclosure: None. This article is originally published at .
Yahoo
11-04-2025
- Business
- Yahoo
Should You Think About Buying Alignment Healthcare, Inc. (NASDAQ:ALHC) Now?
Alignment Healthcare, Inc. (NASDAQ:ALHC), might not be a large cap stock, but it led the NASDAQGS gainers with a relatively large price hike in the past couple of weeks. The recent share price gains has brought the company back closer to its yearly peak. With many analysts covering the mid-cap stock, we may expect any price-sensitive announcements have already been factored into the stock's share price. But what if there is still an opportunity to buy? Let's examine Alignment Healthcare's valuation and outlook in more detail to determine if there's still a bargain opportunity. Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit. The stock seems fairly valued at the moment according to our valuation model. It's trading around 5.6% below our intrinsic value, which means if you buy Alignment Healthcare today, you'd be paying a fair price for it. And if you believe that the stock is really worth $20.95, then there's not much of an upside to gain from mispricing. Is there another opportunity to buy low in the future? Since Alignment Healthcare's share price is quite volatile, we could potentially see it sink lower (or rise higher) in the future, giving us another chance to buy. This is based on its high beta, which is a good indicator for how much the stock moves relative to the rest of the market. See our latest analysis for Alignment Healthcare Future outlook is an important aspect when you're looking at buying a stock, especially if you are an investor looking for growth in your portfolio. Although value investors would argue that it's the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. With profit expected to grow by 93% over the next couple of years, the future seems bright for Alignment Healthcare. It looks like higher cash flow is on the cards for the stock, which should feed into a higher share valuation. Are you a shareholder? It seems like the market has already priced in ALHC's positive outlook, with shares trading around its fair value. However, there are also other important factors which we haven't considered today, such as the track record of its management team. Have these factors changed since the last time you looked at the stock? Will you have enough conviction to buy should the price fluctuates below the true value? Are you a potential investor? If you've been keeping an eye on ALHC, now may not be the most optimal time to buy, given it is trading around its fair value. However, the positive outlook is encouraging for the company, which means it's worth further examining other factors such as the strength of its balance sheet, in order to take advantage of the next price drop. With this in mind, we wouldn't consider investing in a stock unless we had a thorough understanding of the risks. Case in point: We've spotted 2 warning signs for Alignment Healthcare you should be aware of. If you are no longer interested in Alignment Healthcare, you can use our free platform to see our list of over 50 other stocks with a high growth potential. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) 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. Sign in to access your portfolio
