GoHealth eyes record low on negative pre-announcement

GoHealth

02/03/2022 13:48

** GoHealth Inc  GOCO.O  shares drop ~30% to record low
$1.40 before the bell after online health insurer's
disappointing preliminary results
    ** Co sees Q4 rev of $425-$470 mln compared to $446 mln in
yr-ago period  urn:newsml:reuters.com:*:nPnbw4fgca
    ** Street consensus was calling for qtrly rev of ~$616 mln,
per Refinitiv data
    ** Co expects Q4 net loss of $52.7-$38.8 mln vs profit of
$133 mln in Q4 2020
    ** Like other peers, co says "experienced meaningful
pressures resulting from increased consumer shopping and higher
than expected labor and associated costs"
    ** Given the results, co believes it will be out of
compliance with certain financial covenants under its credit
facility for period ended-Dec and may result in non-compliance
for near term future periods
    ** Co says management has engaged in discussions with its
lenders to amend certain of the financial covenants or to obtain
waivers
    ** Q4/FY21 results slated for Mar 15, after market close
    ** Shares have fallen 47.5% in 2022 through close on Tues,
and are down ~86% in past year

 (Lance Tupper is a Reuters market analyst. The views expressed
are his own)
 ((lance.tupper@thomsonreuters.com
lance.tupper@tr.com 1-332-219-1430))