Healthcare Service Provider Agilon Health Stock Is Plunging Today - Here's Why

Agilon Health Inc's AGL Q3 revenue increased 75% to $1.22 billion, beating the consensus of $1.138 billion and management guidance of $1.13 billion -$1.14 billion. The company reported a net loss of $31 million, flat Y/Y.

Total members live on the Agilon platform increased to 508,000 as of September 30, 2023, including 420,300 Medicare Advantage members (compared to management guidance of 410,000-413,000), and 87,700 ACO REACH beneficiaries. 

Medicare Advantage membership increased 58%, with 9% growth across the same geographies.

The medical margin of $108 million increased 42%, compared to $76 million in the third quarter of 2022. 

Agilon Health sold MDX Hawaii, a wholly owned subsidiary, and its related operations to a private buyer.

Agilon's management says the sale of MDX Hawaii will allow the company to focus on its core partner markets in the continental U.S. 

The company reported Q3 adjusted EBITDA of $6 million, down from $18 million a year ago.

Guidance: Agilon Health cuts FY23 revenue guidance from $4.525 billion-$4.540 billion to $4.31 billion-$4.32 billion versus the consensus of $4.54 billion.

The company forecasts FY23 Medicare Advantage Members of 384,000-386,000, down from prior guidance of 412,000-415,000.

For Q4, the company sees MA members of 384,000-386,000 and revenues of $1.05 billion-$1.06 billion.

Price Action: AGL shares are down 16.90% at $14.04 on the last check Friday.