On Tuesday, Oscar Health (OSCR) reported strong first-quarter financial results, leading to a significant increase in its stock price. The health insurer earned an adjusted profit of 62 cents per share on revenue of $2.14 billion, surpassing analyst expectations. This marked Oscar Health’s first profitable quarter, a significant improvement from the year-ago period when the company reported a loss of 18 cents per share.
Analysts polled by FactSet had anticipated Oscar Health to earn 27 cents per share on $1.99 billion in sales, making the actual results a pleasant surprise for investors. The company also saw an improvement in its medical loss ratio, a key metric for health insurers, which increased by 210 basis points to 74.2%.
Despite the positive financial results, Oscar Health reaffirmed its prior 2024 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. With more updates to come, investors will be closely watching how Oscar Health continues to capitalize on its recent successes in the health insurance industry.