Orange-based Alignment Healthcare, a Medicare Advantage provider for seniors, is down 10% in after-hours trading today following first quarter earnings.
The company reported a 33.3% increase in revenue to $1.24 billion, beating the Zacks Consensus Estimate of $1.22 billion. Medicare Advantage membership also grew 31% to 284,000 members in the first quarter.
“We expanded our profitability by executing across sales, clinical operations and cost management, even as the Medicare Advantage environment continues to change,” John Kao, founder and chief executive of Alignment, said in a statement.
Despite the earnings beat, the company’s second-quarter revenue guidance ranged from $1.295 billion to $1.315 billion, with the low end falling short of analysts’ average estimate of $1.31 billion.
Shares in Alignment Healthcare fell 10% to $20.30 in after-hours trading. They had closed regular trading at $22.54 and a $4.6 billion market cap (Nasdaq: ALHC).
