As you might know, Oscar Health, Inc. (NYSE:OSCR) just kicked off its latest first-quarter results with some very strong numbers. It was overall a positive result, with revenues beating expectations by 7.5% to hit US$2.1b. Oscar Health also reported a statutory profit of US$0.62, which was an impressive 142% above what the analysts had forecast. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.
Taking into account the latest results, the current consensus from Oscar Health's twin analysts is for revenues of US$8.81b in 2024. This would reflect a huge 35% increase on its revenue over the past 12 months. Statutory losses are forecast to narrow 5.2% to US$0.24 per share. In the lead-up to this report, the analysts had been modelling revenues of US$8.38b and earnings per share (EPS) of US$0.42 in 2024. Yet despite a small lift in revenues, the analysts are now forecasting a loss instead of a profit, which looks like a reduction in sentiment after the latest results.
The average price target rose 21% to US$23.00, even thoughthe analysts have been updating their forecasts to show higher revenues and higher forecast losses.
Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. The period to the end of 2024 brings more of the same, according to the analysts, with revenue forecast to display 49% growth on an annualised basis. That is in line with its 56% annual growth over the past three years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 5.8% annually. So although Oscar Health is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.
The Bottom Line
The biggest low-light for us was that the forecasts for Oscar Health dropped from profits to a loss next year. Happily, they also upgraded their revenue estimates, and are forecasting them to grow faster than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At least one analyst has provided forecasts out to 2026, which can be seen for free on our platform here.
Before you take the next step you should know about the 2 warning signs for Oscar Health that we have uncovered.
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