Evolent Health (EVH) Reports Q4 Loss, Lags Revenue Estimates

Core Insights - Evolent Health reported a quarterly loss of $0.02 per share, aligning with the Zacks Consensus Estimate, compared to earnings of$0.23 per share a year ago [1] - The company posted revenues of $646.54 million for the quarter ended December 2024, missing the Zacks Consensus Estimate by 1.48$556.06 million year-over-year [2] - Evolent Health shares have declined approximately 6.5% since the beginning of the year, contrasting with the S&P 500's gain of 4.5% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.11 on revenues of$634.34 million, and for the current fiscal year, it is $0.57 on revenues of$2.52 billion [7] - The estimate revisions trend for Evolent Health is mixed, resulting in a Zacks Rank 3 (Hold), indicating expected performance in line with the market [6] Industry Context - The Internet - Software industry, to which Evolent Health belongs, is currently in the top 34% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]