Tuesday’s top losers: GoHealth, SelectQuote, and Graham Corporation
GoHealth shares lost 15%
GoHealth Inc. (NASDAQ: GOCO) shares were down 14.85% in extended trading. The stock has lost 30.11% in a week, and over the past month, the stock has shed 35.86%. The stock dropped alongside other health insurance brokers like SelectQuote, which delivered disappointing quarterly results.
Recently the company announced that it was part of the Built-in rundown of 100 Best places to work in Chicago. A balance of meaningful and fun activities environment, assertive administration assistance for using PTO, cross-useful planning, mentorship projects, and benefits such as kneads in the place of work and restricted rec center registration are just a few of the factors that contributed to GOCO’s designation as a Best Place to Work.
Credit Suisse analyst Jailendra Singh downgraded GoHealth recently from Buy to Hold and cut the price target from $18 to $8 following Q2 results. The analyst contends that the company’s stock and insurance brokers are expected to trade as “dead money” because of the lack of catalysts in the next six months.
SelectQuote misses Q2 estimates
SelectQuote Inc. (NYSE: SLQT) shares were down $47.32%, continuing losses the company has witnessed in recent weeks. In the past week, the stock lost 54.32% of its value, and in one month, the stock is down 60.55%. The stock tanked after missing Q2 estimates and cutting its full-year guidance.
The company reported a Q2 2022 loss in net income of $137 million or $0.84 per share missing in analysts’ projection of net income of $95 million or $0.59 per share. For the period, the company had revenue of $195 million with adjusted revenue of $340 million, missing analysts’ expectations of $44.8 million.
Surprisingly, the insurance distribution platform has slashed its revenue guidance for FY ending June from $1.25 billion-$1.4 billion to between $810 million and $850 million below Wall Street estimates of $990 million.
The earnings and revenue miss and the lowering of FY 2022 guidance surprised Citi’s Daniel Grosslight, who downgraded the stock from Buy to Hold and cut-price target from $14 to 4.
Graham offers a bearish FY2022 outlook
Graham Corporation (NYSE: GHM) stock dipped 24.38%, extending losses in a week to 27.23%. In the past month, the stock has lost 31.27%. Disappointing Q3 2022 results that missed estimates and dovish FY 2022 guidance triggered the drop.
The company reported revenue of $28.77 million, representing YoY growth of 6% but missed consensus estimates of $36.53 million. Graham reported sales of $16.6 million for the defense industry, while the refining industry had sales of $4 million. The company also missed earnings estimates posting an EPS loss of $0.35 versus a consensus of $0.21 per share.
The company lowered FY2022 guidance from $130-$140 million to $$120 million -$125 million, with Q$ revenue expected to range between $37 million and $42 million.
Maxim Group analyst Tate Sullivan slashed his price target on Graham shares from $17 to $15 but maintained a Buy rating on the stock.