Recent initial public offering Privia Health beat two out of three key quarterly projections Thursday, leading the IPO stock to hit a year high.
Despite reporting an unexpected loss of 10 cents a share — analysts predicted no earnings — the self-fashioned "Uber of managed care" easily topped Wall Street's estimates for revenue and practice collections. Privia, which launched its initial public offering in June 2021, helps physicians manage their office work and collects a fee on services the physicians provide.
Practice collections include sales from every state which, due to tax laws, aren't fully reported in Privia's revenue metric. In the second quarter, practice collections soared 68% to $615.5 million and topped projections for $531.4 million. Revenue climbed 49% to $335.54 million, above expectations for $313 million.
Losses narrowed from $1.68 per share in the year-earlier period.
On the stock market today, the IPO stock jumped 4% to 37.87. Privia shares have now roared well above a profit-taking zone north of a cup base and buy point at 29.07, according to MarketSmith.com.
Gain In Practice Collections For IPO Stock
Privia expects full-year collections to come in at the high end of its guidance for $2.05 billion to $2.2 billion. Analysts following the IPO stock were predicting $2.19 billion in practice collections. They also expected a loss of 19 cents per share and $1.28 billion in revenue.
Shares have a strong Relative Strength Rating of 98, putting Privia stock in the leading 2% of all stocks in terms of 12-month performance.
The IPO stock also has a perfect Composite Rating of 99, meaning Privia shares rank in the top 1% of all stocks for fundamental and technical measures, according to IBD Digital.
Follow Allison Gatlin on Twitter at @IBD_AGatlin.
