Shares of Oscar Health (NYSE:OSCR) soared more than 30% in Friday’s trading session despite reporting mixed fourth-quarter results. In the reported quarter, the company witnessed a 93% year-over-year jump in membership. Also, the InsuranceCo combined ratio improved by 850 basis points to 113.9% in Q4. This ratio helps measure the core performance of the company’s consolidated insurance business.
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Oscar Health is a technology-driven health insurance company that provides various insurance plans for individuals, families, and employees.
The company reported a loss of $1.05, much below the Street’s expectations of a loss of $1.14. The figure, however, compares unfavorably with a loss of $0.95 reported in the last year’s quarter.
Revenue more than doubled year-over-year to $995.1 million but fell below the consensus estimate of $1.2 billion. During the quarter, total premiums earned were $967.5 million (up 96%), and investment income was $25 million, compared with $334 million in the same quarter last year.
Regarding the 2023 outlook, the company expects to earn Direct and Assumed Policy premiums between $6.4 billion and $6.6 billion. Furthermore, Oscar anticipates reporting an adjusted EBITDA loss in the range of $75 million to $175 million. In 2022, it reported an adjusted EBITDA loss of $462.3 million.
Is OSCR a Good Stock to Buy?
The stock has a Hold consensus rating based on two Buys, two Holds, and one Sell. The average OSCR stock price forecast is $4.17, implying a downside potential of 15.8% at current levels. The stock has gained about 75% in the past three months.