Agilon health hits record low on 2023 revenue forecast cut

Agilon Health

05/01/2024 15:49

(Updates)
    ** Agilon health's  AGL.N  shares fall 36% to record low of
$7.72    
    ** Healthcare services company now forecasts 2023 total
revenue of $4.295 bln-$4.31 bln vs previous outlook of $4.31
bln-$4.32 bln
    ** Analysts were expecting revenue of $4.53 bln - LSEG
    ** Company says forecast cut reflects higher-than-expected
costs; it also expects higher costs to continue into 2024
    ** AGL also cut 2023 medical margin expectation by about
$110 mln to $340 mln-$360 mln
    ** "The magnitude of this update comes as a surprise" -
Evercore ISI analyst Elizabeth Anderson
    ** Company forecasts 2024 total revenue of $6.35 bln-$6.42
bln vs est $5.98 bln
    ** AGL says CFO Timothy Bensley will retire within next nine
months
    ** Company's shares dropped 22.2% in 2023

 (Reporting by Mariam Sunny in Bengaluru)
 ((Mariam.ESunny@thomsonreuters.com))