Analysts Are Updating Their Clover Health Investments, Corp. (NASDAQ:CLOV) Estimates After Its First-Quarter Results

It's been a pretty great week for Clover Health Investments, Corp. (NASDAQ:CLOV) shareholders, with its shares surging 13% to US$3.75 in the week since its latest first-quarter results. Revenues of US$462m arrived in line with expectations, although statutory losses per share were US$0.003, just a small fraction of what broker models predicted. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

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Taking into account the latest results, the consensus forecast from Clover Health Investments' four analysts is for revenues of US$1.86b in 2025. This reflects a major 25% improvement in revenue compared to the last 12 months. Losses are forecast to balloon 161% to US$0.12 per share. Before this earnings announcement, the analysts had been modelling revenues of US$1.86b and losses of US$0.18 per share in 2025. Although the revenue estimates have not really changed Clover Health Investments'future looks a little different to the past, with a very promising decrease in the loss per share forecasts in particular.

Check out our latest analysis for Clover Health Investments

The average price target held steady at US$4.69, seeming to indicate that business is performing in line with expectations. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values Clover Health Investments at US$6.00 per share, while the most bearish prices it at US$3.75. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Clover Health Investments shareholders.

Of course, another way to look at these forecasts is to place them into context against the industry itself. The analysts are definitely expecting Clover Health Investments' growth to accelerate, with the forecast 35% annualised growth to the end of 2025 ranking favourably alongside historical growth of 18% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 7.0% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Clover Health Investments is expected to grow much faster than its industry.

The Bottom Line

The most obvious conclusion is that the analysts made no changes to their forecasts for a loss next year. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. The consensus price target held steady at US$4.69, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on Clover Health Investments. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Clover Health Investments analysts - going out to 2027, and you can see them free on our platform here.

You still need to take note of risks, for example - Clover Health Investments has 1 warning sign we think you should be aware of.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.