Why GoHealth Shares Are Collapsing Today

GoHealth Inc GOCO is trading significantly lower after the company announced worse-than-expected second-quarter earnings results.

GoHealth reported a quarterly earnings loss of 12 cents per share, which came in below the estimate for a loss of 4 cents per share. The company reported quarterly revenue of $196.9 million, which beat the estimate of $175.08 million.

GoHealth said it expects full-year 2021 revenue to be in a range of $1.2 billion to $1.3 billion.

"While we are encouraged by the growth in our agent force, enhanced training and tight labor markets have created cost pressures that we expect to continue over the balance of the year," said Clint Jones, co-founder and CEO of GoHealth.

Analyst Assessment: Multiple analyst firms adjusted expectations for the stock following its financial results:

• Evercore ISI Group analyst Elizabeth Anderson downgraded GoHealth from Outperform to In-Line and announced a $9 price target.
• Credit Suisse analyst Jailendra Singh downgraded GoHealth from Outperform to Neutral and lowered the price target from $18 to $10.
• Raymond James analyst C. Gregory Peters downgraded GoHealth from Outperform to Market Perform.
• Morgan Stanley analyst Lauren Schenk maintained GoHealth with an Equal-Weight rating and lowered the price target from $14 to $13.

Price Action: GoHealth is making a new 52-week low in trading today.

At last check Thursday, the stock was down 41.20% at $4.82.