Yahoo Finance Oscar Health, Inc. Just Beat EPS By 142%: Here's What Analysts Think Will Happen Next
Oscar Health, Inc. (NYSE:OSCR) just released its quarterly report and things are looking bullish. The company beat forecasts, with revenue of US$2.1b, some 7.5% above estimates, and statutory earnings per share (EPS) coming in at US$0.62, 142% ahead of expectations. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
Check out our latest analysis for Oscar Health
Following the latest results, Oscar Health's twin analysts are now forecasting revenues of US$8.81b in 2024. This would be a sizeable 35% improvement in revenue compared to the last 12 months. The loss per share is expected to greatly reduce in the near future, narrowing 60% to US$0.09. Before this latest report, the consensus had been expecting revenues of US$8.38b and US$0.18 per share in losses. So it seems there's been a definite increase in optimism about Oscar Health's future following the latest consensus numbers, with a considerable decrease in the loss per share forecasts in particular.
It will come as no surprise to learn thatthe analysts have increased their price target for Oscar Health 16% to US$22.00on the back of these upgrades.
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 5.9% 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 most obvious conclusion is that the analysts made no changes to their forecasts for a loss next year. Pleasantly, they also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow faster than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.
With that in mind, we wouldn't be too quick to come to a conclusion on Oscar Health. Long-term earnings power is much more important than next year's profits. At least one analyst has provided forecasts out to 2026, which can be seen for free on our platform here.
However, before you get too enthused, we've discovered 2 warning signs for Oscar Health that you should be aware of.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
