Oscar Health (OSCR) reported its first-quarter financial results on Tuesday, resulting in a significant increase in its stock price. The health insurer reported an adjusted profit of 62 cents per share on revenue of $2.14 billion, beating analyst expectations by 5 cents per share and $74.3 million in sales. This marked a significant improvement from the year-ago period when the company reported a loss of 18 cents per share.
Analysts polled by FactSet had expected Oscar Health to earn 27 cents per share on $1.99 billion in sales, making the actual results a pleasant surprise for investors. The company also saw an improvement in its medical loss ratio, which increased by 210 basis points to 74.2%. Despite this positive financial news, Oscar Health reaffirmed its prior 2024 targets for the year, with analysts projecting a loss of 16 cents per share and $8.29 billion in sales for the company.
In premarket trading on the stock market, Oscar Health’s stock surged 11% to above $21, reaching its highest levels since mid-2021. The stock had recently surpassed a buy point at $18.55 from a cup base, according to MarketSurge, and holds an impressive Relative Strength Rating of 98, placing it in the top 2% of all stocks. Additionally, Oscar Health’s stock is included on the IBD 50 list of elite growth stocks, further highlighting its strong performance in the market. Investors will closely be watching how Oscar Health continues to capitalize on its recent successes in the health insurance industry as more updates are released.
