SelectQuote (NYSE:SLQT) Releases Earnings Results, Beats Expectations By $0.12 EPS

SelectQuote (NYSE:SLQT) posted its earnings results on Wednesday. The company reported ($0.21) earnings per share for the quarter, topping analysts’ consensus estimates of ($0.33) by $0.12, FiscalAI reports. The company had revenue of $280.01 million during the quarter, compared to analyst estimates of $277.91 million. SelectQuote had a net margin of 3.84% and a return on equity of 19.70%.

Here are the key takeaways from SelectQuote’s conference call:

• Adjusted EBITDA loss improved by more than $15 million year over year to $17 million, despite revenue falling 15% to $280 million. Management reiterated its target of at least $60 million in fiscal 2027 operating cash flow.
• SelectQuote is operating with a smaller Senior agent force and is prioritizing profitability over sales volume amid continued Medicare Advantage plan changes. The company has not changed its cautious outlook for policy volumes, though it said agent productivity and technology may help offset the headwind.
• Early AEP engagement is encouraging, and agents have contacted more than half of beneficiaries facing plan terminations; management aims to exceed last year’s 30% recapture rate. Executives emphasized that results are still early and the season remains dynamic.
• Healthcare Services adjusted EBITDA rose 56% to $11 million and EBITDA per SelectRx member increased more than 60%, even as segment revenue fell 16%, primarily due to the Inflation Reduction Act. Management expects the pharmacy management system and facility efficiencies to support further margin improvement, including a goal to double Healthcare Services margins in fiscal 2027.
• The company said it has removed more than $30 million in permanent annualized costs and is using AI to improve agent productivity and streamline enrollment. Management cited faster automated enrollments and expects these technology investments to support profitability and scalability.

SelectQuote Stock Down 21.2%

SelectQuote stock traded down $0.10 on Thursday, hitting $0.39. 1,942,096 shares of the stock traded hands, compared to its average volume of 1,550,854. SelectQuote has a 1 year low of $0.30 and a 1 year high of $1.90. The firm has a market cap of $69.37 million, a P/E ratio of -4.84 and a beta of 2.01. The company has a current ratio of 6.57, a quick ratio of 6.57 and a debt-to-equity ratio of 0.99. The business’s fifty day simple moving average is $0.43 and its 200 day simple moving average is $0.77.

Wall Street Analysts Forecast Growth

A number of equities research analysts have recently weighed in on the company. Wall Street Zen lowered SelectQuote from a “hold” rating to a “sell” rating in a research report on Saturday, August 29th. Zacks Research raised shares of SelectQuote from a “strong sell” rating to a “hold” rating in a research report on Monday, October 26th. Finally, Weiss Ratings downgraded shares of SelectQuote from a “sell (d+)” rating to a “sell (d)” rating in a research report on Monday, August 17th. One equities research analyst has rated the stock with a Strong Buy rating, two have issued a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat, SelectQuote currently has an average rating of “Hold” and a consensus target price of $3.00.

About SelectQuote

SelectQuote, Inc (NYSE: SLQT) operates a technology-enabled insurance distribution platform that helps consumers compare and purchase insurance products from third-party carriers. The company combines digital tools, proprietary data and licensed agents to connect customers with coverage suited to their needs.

SelectQuote’s primary business is its Senior segment, which provides access to Medicare Advantage, Medicare Supplement and prescription drug plans. The company has also historically offered life insurance, as well as auto and home insurance, through its Life and Auto & Home businesses.