Shares of health care delivery and payment solutions firm Evolent Health (EVH) surged in midday trading after reporting third quarter operating results and guidance for the remainder of the year. THIRD QUARTER: The company reported a Q3 loss per share of (4c) on revenue of $150.2M. Analysts were expecting a (4c) loss per share on revenue of $157.11M. Evolent also reported Q3 adjusted EBITDA of $4.8M compared to $2.6M for the same time period last year. GUIDANCE: For the three months ended December 31, revenue is expected to be in the range of $185M-$190M, ahead of analyst views of $177.8M. Adjusted EBITDA is expected to be in the range of approximately $5M-$7M. For the full year 2018, revenue is expected to be in the range of approximately $624M-$629M, against analyst consensus views of $588.58M, CEO COMMENTARY: Frank Williams, the company’s chief executive officer, commented, “We are quite pleased with our third quarter results and our continued strong performance in 2018. Coupled with the recent positive movement in the health care policy environment, our success in driving clinical and financial improvement for our partners has served as a catalyst in growing our pipeline and adding nine new partners to the Evolent network this year.” EVOLENT TO SUPPORT SOMOS IPA NETWORK: Evolent Health and SOMOS IPA announced that Evolent will support the SOMOS IPA network in its operations as a Value-Based Payment, VBP, Innovator in the New York State Department of Health’s Innovator program. As announced by the New York State Department of Health, SOMOS IPA has received a new contracting designation as a Value-Based Payment Innovator. The Innovator program is intended to encourage and reward early adoption of Value-Based Payment arrangements, supporting groups who have invested in moving toward population health management. With its Innovator designation, SOMOS aims to transform the communities it serves by reintroducing the family doctor and strengthening the bond between doctor and patient. ANALYST SEES BUYING OPPORTUNITY: Canaccord analyst Richard Close said the recent weakness in Evolent Health is a buying opportunity. The analyst cited its solid Q3 results and sees the regulatory environment as being favorable for stable growth over the next few years. Close reiterated his Buy rating and $28 price target on Evolent Health shares. PRICE ACTION: Shares of Evolent Health are up 13.3% to $25.90 in early afternoon trading.
Wednesday, November 7, 2018
CDC investigating five illnesses for possible link to Conagra Brands cake mixes
The Centers for Disease Control and Prevention announced that the CDC, state partners, and FDA are investigating five illnesses in three states to determine if they are linked to recently recalled Duncan Hines cake mixes. On November 5, 2018, ConAgra Brands recalled four varieties of Duncan Hines cake mix after officials in Oregon identified Salmonella Agbeni in a box of Duncan Hines Classic White Cake Mix. CDC reviewed the PulseNet database and identified five recent infections with the same strain of Salmonella Agbeni as the Salmonella strain identified in the cake mix. Illnesses were reported from three states: Maryland, Ohio, and Wisconsin. None of the ill people were hospitalized, and none died. The investigation is ongoing to determine if these illnesses are linked to Duncan Hines cake mix and the CDC said it will provide updates as more information becomes available.
Inogen falls sharply after quarterly results, guidance reduction
Shares of Inogen (INGN), a medical technology company, that primarily develops, manufactures, and markets portable oxygen concentrators, are plunging after reporting third quarter results after the close of trading Tuesday night. THIRD QUARTER BEAT: The company reported Q3 EPS of 73c on revenue of $95.3M. Analysts were expecting EPS of 52c on revenue of $90.9M. Direct-to-consumer sales rose 66.3% over the same period in 2017, primarily due to increased sales representative headcount and additional consumer advertising. Domestic business-to-business sales grew 32.0% over the same period in 2017, primarily driven by continued adoption by traditional home medical equipment providers and internet resellers. GUIDANCE LIGHT: Inogen said it sees 2018 revenue $345M-$355M against estimates of $349.9M. The company also reduced its guidance range for FY18 adjusted EBITDA to $60M-$62M, down from $65M-$69M, representing growth of 18.0%-22.0% versus FY17 results due to continued sales and marketing investments expected in Q4 of 2018. The company is also providing a guidance range for FY19 adjusted EBITDA of $67M-$71M, representing 9.8%-16.4% growth over the FY18 guidance mid-point of $61M. Inogen expects FY19 operating income to be $46M-$50M, representing 27.8%-38.9% growth over the FY18 guidance mid-point of $36M, primarily due to continued sales and marketing investments expected in FY19. PRICE ACTION: Shares of Inogen are down more than 19% to $156.44 in afternoon trading.
Cannabis stocks rise after Jeff Sessions resigns as Attorney General
Several marijuana stocks are on the rise after Attorney General Jeff Sessions submitted his resignation at the request of President Donald Trump. Sessions has been vehemently against legalizing marijuana and was seen by many as the only thing deterring legalization on a federal level. JEFF SESSIONS RESIGNS: In a couple of tweets, President Donald Trump said that “We are pleased to announce that Matthew Whitaker, Chief of Staff to Attorney General Jeff Sessions at the Department of Justice, will become our new Acting Attorney General of the United States. He will serve our Country well. We thank Attorney General Jeff Sessions for his service, and wish him well! A permanent replacement will be nominated at a later date.” The departure of Sessions, once one of Trump’s most vocal and earliest supporters during the 2016 campaign, has been rumored for weeks. PRICE ACTION: In afternoon trading, shares of Aurora Cannabis (ACB) and Canopy Growth (CGC) each rose over 4%, CannTrust Holdings (CNTTF) gained 2%, Cronos Group (CRON) advanced 6%, General Cannabis (CANN) rose 8.5%, India Globalization Capital (IGC) jumped 32.5% and Tilray (TLRY) is up 26%.
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