Online health insurance comparison site eHealth (NASDAQ:EHTH) will be reporting results tomorrow before the bell. Here's what to expect.
eHealth beat analysts' revenue expectations by 15.3% last quarter, reporting revenues of $92.96 million, up 26.1% year on year. It was an ok quarter for the company, with solid revenue growth but a decline in its users. It reported 1.18 billion users, down 4.7% year on year.
Is eHealth a buy or sell going into earnings? Read our full analysis here, it's free.
This quarter, analysts are expecting eHealth's revenue to decline 18.4% year on year to $54.47 million, a reversal from the 32.5% increase it recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.81 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. eHealth has only missed Wall Street's revenue estimates once over the last two years, exceeding top-line expectations by 6.2% on average.
Looking at eHealth's peers in the online marketplace segment, some have already reported their Q2 results, giving us a hint as to what we can expect. MercadoLibre delivered year-on-year revenue growth of 41.5%, beating analysts' expectations by 8.3%, and EverQuote reported revenues up 72.3%, topping estimates by 13.9%. MercadoLibre traded up 10.7% following the results.
Read our full analysis of MercadoLibre's results here and EverQuote's results here.
Stocks, especially growth stocks where cash flows further in the future are more important to the story, had a good end of 2023. 2024 has seen more volatile stock performance thanks to mixed inflation data, and while some of the online marketplace stocks have fared somewhat better, they have not been spared, with share prices down 6.6% on average over the last month. eHealth is up 6.3% during the same time and is heading into earnings with an average analyst price target of $8 (compared to the current share price of $4.59).
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