Agilon health slumps on 2023 revenue forecast cut

Agilon Health

05/01/2024 13:43

** Shares of healthcare services co Agilon Health  AGL.N 
fall ~28% to $8.70 premarket    
    ** Co now sees 2023 total revenue in the range of $4.295
bln- $4.31 bln vs $4.31 bln- $4.32 bln forecast previously 
    ** Analysts were expecting revenue of $4.53 bln- LSEG data  
    ** Co says the forecast cut reflects higher-than-expected
costs; it also expects higher costs to continue into 2024  
    ** Co also cut 2023 medical margin expectation by about $110
million to $340 mln-$360 mln 
    ** "The magnitude of this update comes as a surprise,"
Evercore ISI analyst Elizabeth Anderson says in a note
    ** Co sees 2024 total revenue in the range of $6.35 bln-
$6.42 bln vs analysts' estimate of $5.98 bln -LSEG data 
    ** AGL says its Chief Financial Officer Timothy Bensley will
retire within the next nine months   
    ** AGL stock dropped 22.24% in 2023

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