Analysts Are Upgrading Oscar Health, Inc. (NYSE:OSCR) After Its Latest Results
The investors in Oscar Health, Inc.'s (NYSE:OSCR) will be rubbing their hands together with glee today, after the share price leapt 30% to US$17.68 in the week following its annual results. Revenue hit US$5.9b in line with forecasts, although the company reported a statutory loss per share of US$1.22 that was somewhat smaller than the analyst expected. This is an important time for investors, as they can track a company's performance in its report, look at what expert is forecasting for next year, and see if there has been any change to expectations for the business. So we gathered the latest post-earnings forecasts to see what estimate suggests is in store for next year.
See our latest analysis for Oscar Health
Following the latest results, Oscar Health's solitary analyst are now forecasting revenues of US$8.39b in 2024. This would be a substantial 43% improvement in revenue compared to the last 12 months. Earnings are expected to improve, with Oscar Health forecast to report a statutory profit of US$0.04 per share. Before this latest report, the consensus had been expecting revenues of US$7.26b and US$0.17 per share in losses. It looks like there's been a definite improvement in business conditions, with a revenue upgrade expected to lead to profitability sooner than previously forecast.
With these upgrades, we're not surprised to see that the analyst has lifted their price target 60% to US$16.00per share.
Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. It's pretty clear that there is an expectation that Oscar Health's revenue growth will slow down substantially, with revenues to the end of 2024 expected to display 43% growth on an annualised basis. This is compared to a historical growth rate of 63% over the past three years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 5.8% per year. Even after the forecast slowdown in growth, it seems obvious that Oscar Health is also expected to grow faster than the wider industry.
The Bottom Line
The most important thing to take away is that the analyst now expect Oscar Health to become profitable next year, compared to previous expectations that it would report a loss. Happily, they also upgraded their revenue estimates, and are forecasting them to grow faster than the wider industry. There was also a nice increase in the price target, with the analyst clearly feeling that the intrinsic value of the business is improving.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At least one analyst has provided forecasts out to 2025, which can be seen for free on our platform here.
And what about risks? Every company has them, and we've spotted 2 warning signs for Oscar Health 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.
