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Agilon health (NYSE:AGL) reached a new 52-week low on Friday after the primary care provider indicated a mixed performance with its Q3 2023 financials and lowered its full-year outlook, prompting Wall Street analysts to lower their price targets.
While Austin, Texas-based agilon (AGL) exceeded expectations for its topline, recording $1.2B in revenue with ~76% YoY growth, its bottom line missed estimates even as GAAP net loss for the quarter held steady at $31.5M.
With its wholly-owned subsidiary MDX Hawaii divested in October, agilon (AGL) lowered its full-year revenue outlook to $4.310B–4.320B from $4.525B–4.54B and projected its Q4 2023 revenue to reach $1.05B–$1.06B compared to $1.12B in Bloomberg consensus data.
“Our decision to sell MDX Hawaii and focus on our core partner markets, which leverage a common operating model, will better position agilon, our partner groups, and their patients for continued success in 2024 and beyond,” CEO Steve Sell remarked.
After the results, analysts from RBC Capital Market and Leerink Partners trimmed their price targets on AGLN to $23 from $28 and $25 from $30 per share, respectively. Both firms with Outperform ratings on the stock agreed that Q3 results lacked clarity.
“The medical margin downside was driven primarily by negative prior-year claims of $8M and to a lesser extent an uptick in utilization,” RBC’s Sean Dodge wrote.
“3Q results presented tremendous complexity on the underlying business trends and guidance adjustment,” Leerink analyst Whit Mayo added. However, Mayo sees clear prospects after the MDX Hawaii sale.