BRIGHT HEALTH Reports Second Quarter Earnings Results for Fiscal Year 2023
August 23, 2023
☀️Earnings Overview
On August 9th 2023, BRIGHT HEALTH ($NYSE:BHG) announced their earnings results for the second quarter of fiscal year 2023, which ended on June 30th 2023. The company reported total revenue of USD 298.0 million, representing a decrease of 81.1% as compared to the same period in the prior year. Additionally, net income was reported to be USD -112.8 million, an improvement from the -274.7 million reported in the same quarter of the previous year.
Price History
The stock opened the day at $16.1 and closed at $15.4, representing a plunge of 12.3% from its prior closing price of 17.6. This drop in share price occurred despite the company reporting revenue and operating income figures that exceeded analyst expectations. In addition to the company’s revenue and operating income figures exceeding expectations, BRIGHT HEALTH also reported positive growth in its customer base and an increase in the company’s total assets. Finally, the company announced that it had repurchased $30 million worth of its own shares during the quarter.
The company’s strong financial results demonstrate its continued commitment to providing quality healthcare to its customers. Despite the drop in share price, BRIGHT HEALTH remains committed to providing quality healthcare services and has made significant investments in its operations. With the company’s second quarter earnings results showing strong performance, investors can remain confident in BRIGHT HEALTH’s ability to continue providing quality healthcare services. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Bright Health. More…
| Total Revenues | Net Income | Net Margin |
| 2.68k | -1.32k | -17.9% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Bright Health. More…
| Operations | Investing | Financing |
| -1.22k | 678.99 | 470.16 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Bright Health. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 4.39k | 3.66k | 60.96 |
Key Ratios Snapshot
Some of the financial key ratios for Bright Health are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 104.8% | – | -18.9% |
| FCF Margin | ROE | ROA |
| -45.9% | -59.6% | -7.2% |
Analysis
At GoodWhale, we’ve done an in-depth analysis of BRIGHT HEALTH’s fundamentals and have determined that it is a medium risk investment. We’ve based this on our Risk Rating system which takes into account various financial and business factors. It’s important to note that during our analysis, we detected two risk warnings in the cashflow statement and financial journal. To view these in detail, you must become a registered user of GoodWhale. More…
Peers
Bright Health Group Inc is an innovative healthcare company that offers a variety of insurance solutions to meet the needs of individuals, families and businesses. The company prides itself on providing personalized, high-quality care. In addition to Bright Health Group Inc, there are several notable competitors in the industry such as Marpai Inc, Molina Healthcare Inc, and Alignment Healthcare Inc. All of these companies strive to provide quality healthcare services and are committed to improving the lives of their customers.
– Marpai Inc ($NASDAQ:MRAI)
Marpai Inc is a technology company that specializes in creating innovative solutions for the healthcare industry. The company has a market cap of 17.8 million as of 2022 and a Return on Equity of -89.29%. Market capitalization is an important measure of the worth of a company, and Marpai Inc’s market cap demonstrates that it is a medium-sized business. The Return on Equity of -89.29% is a concerning number as it indicates that the company has not been successful in generating profits from its investments. Marpai Inc needs to take measures to increase their profitability and improve their Return on Equity in order to attract more investors.
– Molina Healthcare Inc ($NYSE:MOH)
Molina Healthcare Inc is a Fortune 500 company that provides managed care services in the United States. It serves government-sponsored healthcare programs, including Medicaid, Medicare, and the Children’s Health Insurance Program (CHIP). As of 2022, the company has a market cap of 20.62 billion USD, making it a large player in the managed care industry. Its Return on Equity (ROE) is also impressive, currently standing at 26.27%. This suggests that Molina Healthcare is a profitable company, with the ability to generate returns from its invested capital.
– Alignment Healthcare Inc ($NASDAQ:ALHC)
Alignment Healthcare Inc is a healthcare services company that provides population health management solutions to help clients manage their risk, optimize quality, and reduce costs. The company has a market cap of 2.25 billion as of 2022, which is an indication of its size and market presence in the healthcare services industry. The company’s Return on Equity (ROE) of -27.03% shows that the company has not been able to generate income from its investments, resulting in negative returns. This could be due to rising costs and competitive pressures in the industry.
Summary
BRIGHT HEALTH saw a significant decrease in revenue for the second quarter of fiscal year 2023 compared to the same period of the prior year. Net income also decreased significantly, from -274.7 million to -112.8 million. This news sent the stock price down on the same day, making it a risky investment.
Investors should be cautious when considering investing in BRIGHT HEALTH, as this could be a sign of future financial struggles. Nonetheless, analyzing the company’s financial performance over the past few quarters and assessing the current market trends could help investors decide whether the stock is worth investing in.
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