SelectQuote Q2 Earnings Exceed Expectations
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3d ago
0mins
Should l Buy SLQT?
Source: seekingalpha
- Earnings Beat: SelectQuote reported Q2 GAAP EPS of $0.26, exceeding expectations by $0.05, indicating strong profitability and boosting investor confidence in the company's financial health.
- Revenue Growth: The company achieved revenue of $537.1 million, an 11.6% year-over-year increase, surpassing market expectations by $6.37 million, reflecting SelectQuote's competitive position and driving overall business growth.
- Future Guidance: SelectQuote's guidance for fiscal year 2026 projects revenue between $1.61 billion and $1.71 billion, with adjusted EBITDA expected to range from $90 million to $100 million, showcasing the company's confidence in future growth and strategic planning.
- Financing Support: The company secured a $415 million credit facility, extending debt maturity to 2031, which will provide greater financial flexibility and support its long-term growth strategy.
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Analyst Views on SLQT
Wall Street analysts forecast SLQT stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for SLQT is 6.00 USD with a low forecast of 5.00 USD and a high forecast of 7.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
3 Analyst Rating
2 Buy
1 Hold
0 Sell
Moderate Buy
Current: 1.030
Low
5.00
Averages
6.00
High
7.00
Current: 1.030
Low
5.00
Averages
6.00
High
7.00
About SLQT
SelectQuote, Inc. provides a technology-enabled, direct-to-consumer (DTC) distribution and engagement platform for selling insurance policies and healthcare services. The Company has four core business lines: SelectQuote Senior, SelectQuote Healthcare Services, SelectQuote Life, and SelectQuote Auto and Home. SelectQuote’s Senior division sells Medicare Advantage, Medicare Supplement, Medicare Part D, and other ancillary senior health insurance related products. SelectQuote Healthcare Services comprises SelectRx Pharmacy, a specialized medication management pharmacy, and Population Health which proactively connects its members with healthcare services that fit each member's healthcare needs. SelectQuote’s Auto & Home division primarily sells non-commercial auto and home, property and casualty insurance products. SelectQuote’s Life division sells term life, final expenses, and other ancillary products. SelectRx is a Patient-Centered Pharmacy Home (PCPH) accredited pharmacy.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
SelectQuote Reports Strong Q2 2026 Earnings Amid Guidance Cuts
- Strong Financial Performance: SelectQuote reported Q2 revenue of $537 million, a 12% year-over-year increase, with the Healthcare Services segment growing 26%, reflecting robust demand and execution in the senior market.
- Record EBITDA Margins: The company achieved a near-record EBITDA margin of 39% in its Senior division, despite facing budget cuts from PBM and carrier partners, indicating strong profitability resilience.
- Credit Facility Expansion: SelectQuote announced a new $415 million credit facility extending debt maturities to 2031, providing greater financial flexibility to support ongoing profitable growth initiatives.
- Revised Financial Guidance: While management remains confident in long-term targets, the fiscal 2026 revenue guidance has been lowered to a range of $1.61 billion to $1.71 billion due to PBM and carrier budget cuts, highlighting short-term market challenges.
See More
SelectQuote Q2 Earnings Exceed Expectations
- Earnings Beat: SelectQuote reported Q2 GAAP EPS of $0.26, exceeding expectations by $0.05, indicating strong profitability and boosting investor confidence in the company's financial health.
- Revenue Growth: The company achieved revenue of $537.1 million, an 11.6% year-over-year increase, surpassing market expectations by $6.37 million, reflecting SelectQuote's competitive position and driving overall business growth.
- Future Guidance: SelectQuote's guidance for fiscal year 2026 projects revenue between $1.61 billion and $1.71 billion, with adjusted EBITDA expected to range from $90 million to $100 million, showcasing the company's confidence in future growth and strategic planning.
- Financing Support: The company secured a $415 million credit facility, extending debt maturity to 2031, which will provide greater financial flexibility and support its long-term growth strategy.
See More
SelectQuote Scheduled to Announce Q2 Earnings on February 5th
- Earnings Announcement Date: SelectQuote (SLQT) is set to release its Q2 2023 earnings on February 5th before market open, with consensus EPS estimate at $0.28, reflecting a 6.7% year-over-year decline, while revenue is projected at $530.73 million, indicating a 10.3% year-over-year increase.
- Performance Expectations: Over the past year, SelectQuote has exceeded EPS estimates 75% of the time and revenue estimates 100% of the time, demonstrating the company's reliability in performance forecasting, despite recent downward adjustments in both EPS and revenue estimates.
- Revision Trends: In the last three months, SelectQuote's EPS estimates have seen no upward revisions and one downward revision, while revenue estimates have experienced four downward revisions, suggesting a cautious market outlook regarding the company's future performance.
- Financing and Outlook: SelectQuote recently secured a $415 million credit facility, extending its debt maturity to 2031, and projects FY26 revenue between $1.65 billion and $1.75 billion, although it faces headwinds from pharmacy benefit managers (PBM).
See More
SelectQuote Secures $415 Million Credit Facility to Strengthen Financial Position
- Successful Financing: SelectQuote has completed a new $415 million credit facility, consisting of a $325 million term loan and a $90 million revolving credit, significantly enhancing the company's liquidity and financial flexibility.
- Debt Maturity Extension: This financing extends the company's debt maturity to 2031, allowing for better planning of future capital structure and investment strategies, further solidifying its leadership in the Medicare insurance market.
- Cash Flow Validation: The confidence shown by Pathlight Capital and UMB Bank in this financing underscores SelectQuote's stability regarding its approximately $1 billion in commissions receivable and cash-generating capabilities, boosting investor confidence.
- Management Confidence Boost: SelectQuote CEO Tim Danker stated that this financing marks a significant milestone in capital structure optimization, expected to support the company's continued growth in the senior health insurance and healthcare services sectors.
See More
SelectQuote Faces Investigation Over Alleged Illegal Payments Exceeding $80 Million
- Investigation Launched: Berman Tabacco announces an investigation into SelectQuote for allegedly receiving illegal payments from health insurers, potentially exceeding $80 million, highlighting significant governance risks within the company.
- Details of Allegations: The complaint alleges that between 2016 and 2021, SelectQuote received illegal payments from Humana and Aetna to steer customers towards their Medicare offerings, revealing direct involvement from senior executives.
- Stock Price Impact: Following the Department of Justice's complaint, SelectQuote's shares fell approximately 20%, indicating market concerns over corporate governance and compliance, which may lead to diminished investor confidence.
- Board Accountability: The investigation will focus on whether SelectQuote's board had a role in the scheme and if its executives breached fiduciary duties, potentially impacting future management decisions and the company's reputation.
See More
SelectQuote Under Investigation for Alleged Illegal Payments Exceeding $80 Million
- Investigation Launched: Berman Tabacco announces an investigation into SelectQuote for allegedly receiving illegal payments from Humana and Aetna between 2016 and 2021, potentially exceeding $80 million, highlighting significant governance risks for the company.
- Executive Involvement: The complaint alleges that senior executives at SelectQuote were personally involved in the illegal payment scheme, which, if proven true, could severely damage the company's reputation and shareholder trust, potentially leading to further legal actions.
- Stock Price Impact: Following the Department of Justice's complaint, SelectQuote's shares fell approximately 20%, reflecting market concerns over the company's compliance and future profitability, which may lead to diminished investor confidence.
- Board Accountability: The investigation will also examine whether SelectQuote's board of directors failed in their duties regarding this incident, and if found negligent, it could trigger shareholder lawsuits and further impact the company's governance structure.
See More
SelectQuote Reports Strong Q2 2026 Earnings Amid Guidance Cuts
- Strong Financial Performance: SelectQuote reported Q2 revenue of $537 million, a 12% year-over-year increase, with the Healthcare Services segment growing 26%, reflecting robust demand and execution in the senior market.
- Record EBITDA Margins: The company achieved a near-record EBITDA margin of 39% in its Senior division, despite facing budget cuts from PBM and carrier partners, indicating strong profitability resilience.
- Credit Facility Expansion: SelectQuote announced a new $415 million credit facility extending debt maturities to 2031, providing greater financial flexibility to support ongoing profitable growth initiatives.
- Revised Financial Guidance: While management remains confident in long-term targets, the fiscal 2026 revenue guidance has been lowered to a range of $1.61 billion to $1.71 billion due to PBM and carrier budget cuts, highlighting short-term market challenges.
See More
SelectQuote Q2 Earnings Exceed Expectations
- Earnings Beat: SelectQuote reported Q2 GAAP EPS of $0.26, exceeding expectations by $0.05, indicating strong profitability and boosting investor confidence in the company's financial health.
- Revenue Growth: The company achieved revenue of $537.1 million, an 11.6% year-over-year increase, surpassing market expectations by $6.37 million, reflecting SelectQuote's competitive position and driving overall business growth.
- Future Guidance: SelectQuote's guidance for fiscal year 2026 projects revenue between $1.61 billion and $1.71 billion, with adjusted EBITDA expected to range from $90 million to $100 million, showcasing the company's confidence in future growth and strategic planning.
- Financing Support: The company secured a $415 million credit facility, extending debt maturity to 2031, which will provide greater financial flexibility and support its long-term growth strategy.
See More
SelectQuote Scheduled to Announce Q2 Earnings on February 5th
- Earnings Announcement Date: SelectQuote (SLQT) is set to release its Q2 2023 earnings on February 5th before market open, with consensus EPS estimate at $0.28, reflecting a 6.7% year-over-year decline, while revenue is projected at $530.73 million, indicating a 10.3% year-over-year increase.
- Performance Expectations: Over the past year, SelectQuote has exceeded EPS estimates 75% of the time and revenue estimates 100% of the time, demonstrating the company's reliability in performance forecasting, despite recent downward adjustments in both EPS and revenue estimates.
- Revision Trends: In the last three months, SelectQuote's EPS estimates have seen no upward revisions and one downward revision, while revenue estimates have experienced four downward revisions, suggesting a cautious market outlook regarding the company's future performance.
- Financing and Outlook: SelectQuote recently secured a $415 million credit facility, extending its debt maturity to 2031, and projects FY26 revenue between $1.65 billion and $1.75 billion, although it faces headwinds from pharmacy benefit managers (PBM).
See More
SelectQuote Secures $415 Million Credit Facility to Strengthen Financial Position
- Successful Financing: SelectQuote has completed a new $415 million credit facility, consisting of a $325 million term loan and a $90 million revolving credit, significantly enhancing the company's liquidity and financial flexibility.
- Debt Maturity Extension: This financing extends the company's debt maturity to 2031, allowing for better planning of future capital structure and investment strategies, further solidifying its leadership in the Medicare insurance market.
- Cash Flow Validation: The confidence shown by Pathlight Capital and UMB Bank in this financing underscores SelectQuote's stability regarding its approximately $1 billion in commissions receivable and cash-generating capabilities, boosting investor confidence.
- Management Confidence Boost: SelectQuote CEO Tim Danker stated that this financing marks a significant milestone in capital structure optimization, expected to support the company's continued growth in the senior health insurance and healthcare services sectors.
See More
SelectQuote Faces Investigation Over Alleged Illegal Payments Exceeding $80 Million
- Investigation Launched: Berman Tabacco announces an investigation into SelectQuote for allegedly receiving illegal payments from health insurers, potentially exceeding $80 million, highlighting significant governance risks within the company.
- Details of Allegations: The complaint alleges that between 2016 and 2021, SelectQuote received illegal payments from Humana and Aetna to steer customers towards their Medicare offerings, revealing direct involvement from senior executives.
- Stock Price Impact: Following the Department of Justice's complaint, SelectQuote's shares fell approximately 20%, indicating market concerns over corporate governance and compliance, which may lead to diminished investor confidence.
- Board Accountability: The investigation will focus on whether SelectQuote's board had a role in the scheme and if its executives breached fiduciary duties, potentially impacting future management decisions and the company's reputation.
See More
SelectQuote Under Investigation for Alleged Illegal Payments Exceeding $80 Million
- Investigation Launched: Berman Tabacco announces an investigation into SelectQuote for allegedly receiving illegal payments from Humana and Aetna between 2016 and 2021, potentially exceeding $80 million, highlighting significant governance risks for the company.
- Executive Involvement: The complaint alleges that senior executives at SelectQuote were personally involved in the illegal payment scheme, which, if proven true, could severely damage the company's reputation and shareholder trust, potentially leading to further legal actions.
- Stock Price Impact: Following the Department of Justice's complaint, SelectQuote's shares fell approximately 20%, reflecting market concerns over the company's compliance and future profitability, which may lead to diminished investor confidence.
- Board Accountability: The investigation will also examine whether SelectQuote's board of directors failed in their duties regarding this incident, and if found negligent, it could trigger shareholder lawsuits and further impact the company's governance structure.
See More
