Austin-based online health-insurance agency marketplace, eHealth, saw its share prices surge after announcing an upward revision to its revenue expectations for 2023. The company now forecasts a narrower-than-previously-anticipated loss, citing increased Medicare business and higher Medicare profit margins as contributing factors.
Share Price Soars
Following the announcement, shares of eHealth jumped by 15% to reach $6.41 during premarket trading.
Improved Projections
eHealth now anticipates a loss for 2023 in the range of $27 million to $32 million, a reduction from the previous forecast of $26 million to $46 million in losses.
In terms of revenue, eHealth now expects to report figures between $446 million and $454 million for the year 2023, up from the previously projected range of $439 million to $459 million.
Fourth-Quarter Outlook
Adjusted EBITDA
eHealth anticipates reporting adjusted earnings before interest, taxes, and depreciation (EBITDA) in the range of $10 million to $15 million for 2023. This is a significant improvement compared to the previous estimate, which ranged from an adjusted EBITDA loss of $3 million to an adjusted EBITDA of $17 million.
