Movement Alert|Alignment Healthcare, Inc. Falls 16.68% in Regular Trading, Whistleblower Lawsuit Overshadows Strong Q2 Earnings Beat

Market Focus08-01 03:56

On July 31, Alignment Healthcare, Inc. fell 16.68% in regular trading, trading at $15.24/share, with turnover of $231 million.

On the news front, the company reported Q2 EPS of $0.17, beating the FactSet consensus estimate of $0.13 by approximately 31%. Revenue came in at $1.336 billion, surpassing the $1.31 billion estimate and representing 31.6% year-over-year growth. Medicare Advantage membership grew 31.5% year-over-year to approximately 294,100 members. The company also raised full-year revenue guidance to $5.195 billion–$5.225 billion, above the consensus estimate of $5.19 billion.

Despite the across-the-board earnings beat and raised guidance, the stock came under significant selling pressure due to an ongoing whistleblower lawsuit filed by a former executive alleging systematic financial manipulation. Law firm Hagens Berman has launched a securities fraud investigation into the company. Alignment Healthcare has denied the allegations and stated it intends to defend vigorously.

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