FX.co ★ Oscar Health Swings To Q1 Profit, Beats Street; Backs Annual Revenue Outlook; Stock Up In Pre-market

Oscar Health, Inc., a health insurance company, announced a significant turnaround in its first-quarter earnings report, posted on Tuesday. The company reported a profit, in contrast to a loss recorded during the same period in the previous year. The increase in profits was largely due to an upswing in premiums. The company not only beat expectations in terms of both revenue and profit, but Oscar Health's stock also leaped over 14 percent in pre-market trading, reaching $21.50.

During the first quarter, the company recorded a net income of $177.37 million, or $0.62 per share, a stark contrast to the loss of $39.77 million, or $0.18 per share, it incurred during the same quarter in the previous year.

There was a 46 percent surge in the quarter's revenue, which escalated to $2.142 billion from $1.469 billion the previous year. The surge was principally driven by an increase in membership, rate hikes, and a decrease in risk adjustment as a proportion of premiums. Premiums also saw a considerable increase, from $1.429 billion in the previous year to $2.094 billion.

The anticipated earnings of the company for the quarter, according to a poll of analysts conducted by Thomson-Reuters, were $0.27 per share on a revenue of $2.01 billion. The estimates usually exclude any extraordinary items.

The company also reaffirmed its revenue outlook for the full year, maintaining it at $8.3 billion to $8.4 billion. This is on par with the consensus estimate of $8.33 billion.

As of Monday, shares of Oscar Health closed at $18.97, marking an increase of 5.27 percent. Over the past year, the company's stock has traded in a range between $4.72 and $19.04.