Oscar Health (OSCR) reported first-quarter financial results that exceeded analyst expectations, leading to a significant increase in its stock price. The health insurer reported an adjusted profit of 62 cents per share on revenue of $2.14 billion, marking its first-ever quarter of profitability. This was a significant improvement from the year-ago period when the company reported a loss of 18 cents per share.
Analysts had anticipated Oscar Health to earn 27 cents per share on $1.99 billion in sales. However, the actual results were a pleasant surprise for investors, with the company seeing an improvement in its medical loss ratio, which increased by 210 basis points to 74.2%. Despite this positive financial performance, Oscar Health reaffirmed its prior targets for the year. Analysts had projected a loss of 16 cents per share and $8.29 billion in sales for the company.
In premarket trading on the stock market, Oscar Health’s stock surged 11% to above $21, reaching its highest levels since mid-2021. The stock had recently surpassed a buy point at $18.55 from a cup base, according to MarketSurge, and holds an impressive Relative Strength Rating of 98, placing it in the top 2% of all stocks. Additionally, Oscar Health stock is included on the IBD 50 list of elite growth stocks, further highlighting its strong performance in the market.
As investors continue to closely watch how Oscar Health capitalizes on its recent successes in the health insurance industry, more updates are expected to come regarding this exciting company’s future prospects and potential growth opportunities.