AUSTIN, Texas - agilon health, inc. (NYSE: AGL), which partners with physicians to transform health care, announced the appointment of Jeff Schwaneke as its new Chief Financial Officer (CFO) and Executive Vice President, effective July 1, 2024. Schwaneke, who is currently a member of the company's board, will transition to this executive role, succeeding Timothy Bensley, who is retiring.
Schwaneke brings over 27 years of experience in finance and operations, with a significant background in the managed care sector. His most recent position was as Executive Vice President, Health Care Enterprises, at Centene (NYSE:CNC) Corporation, a Fortune 50 health care enterprise. During his tenure at Centene, Schwaneke was instrumental in the company's growth, overseeing significant aspects of its financial operations, including a $35 billion pharmacy business.
In his forthcoming role at agilon health, Schwaneke will report to CEO Steve Sell and will be responsible for the company's financial operations. His appointment comes at a time when the company is experiencing strong demand for its health care model from physician practices and payors.
Ron Williams, Chairman of the Board, expressed confidence in Schwaneke's ability to contribute to agilon health's future, highlighting his valuable insights into the managed care landscape. CEO Steve Sell also recognized Schwaneke's extensive leadership and financial expertise, which have been beneficial to the company and its physician partners.
Sell took the opportunity to thank the outgoing CFO, Timothy Bensley, for his contributions to agilon health over the past three years and wished him well for his retirement.
Schwaneke expressed enthusiasm about his new role, emphasizing the importance of agilon's model in transforming health care delivery and his eagerness to work with the Executive Leadership team to meet the growing demand.
The information in this article is based on a press release statement from agilon health.
In other recent news, Agilon Health Inc. has been the subject of various financial analyses, following a slight revenue miss in Q1 2024. Despite this, the company demonstrated resilience with its EBITDA surpassing expectations due to effective cost management and strategic decisions. Analysts noted a minor revenue shortfall of 0.6% but a significant 52% EBITDA beat against consensus, primarily due to reduced operating expenses.
Agilon has been proactive in securing retroactive relief from partners and exiting two unprofitable contracts, reflecting the company's strategic approach to managing its financial health. Despite facing medical margin pressures, the company has been able to negotiate favorable terms with payers, securing off-cycle rate increases and favorable economic adjustments.
Analysts' ratings for Agilon have been mixed. RBC (TSX:RY) Capital Markets and JMP Securities have assigned "Outperform" and "Market Outperform" ratings respectively, reflecting a positive outlook, while Barclays (LON:BARC) Capital Inc. has given an "Underweight" rating, suggesting some concerns about the company's future performance. Truist Securities has retained a "Hold" rating on the stock, with a slight increase in the price target to $6.50 from $6.40.
Despite the decision to exit unprofitable payer contracts leading to lowered membership growth projections for 2024, Agilon's Medicare Advantage membership grew by 43% to 523K, slightly below estimates but within guidance. Agilon's strategic moves and relationships with key payers could potentially drive long-term growth and improve its market position.
InvestingPro Insights
Agilon Health, Inc. (NYSE: AGL) has recently appointed a new CFO, Jeff Schwaneke, at a critical juncture in the company's journey. As AGL focuses on transforming health care in partnership with physicians, InvestingPro data and tips provide a deeper understanding of the company's financial health and market position.
InvestingPro Data indicates that AGL holds a market capitalization of $2.74 billion, with a negative P/E ratio of -9, reflecting the company's current lack of profitability. Despite this, AGL has shown a remarkable revenue growth of 74.48% over the last twelve months as of Q1 2024, signaling potential in its business model and market strategy.
In terms of operational efficiency, AGL's gross profit margin stands at a lean 1.47% for the same period, underscoring the challenges the company faces in converting its top-line growth into bottom-line results. This is further emphasized by an operating income margin of -4.88%.
InvestingPro Tips for AGL highlight that the management's active share buyback strategy could be a sign of confidence in the company's future. Additionally, the fact that AGL holds more cash than debt on its balance sheet provides financial flexibility, which may be crucial as the company navigates a transformative phase under new financial leadership.
It's worth noting that two analysts have revised their earnings downwards for the upcoming period, which may warrant caution. However, with strong return over the last month, investors may be witnessing a potential turnaround or market correction.
For those looking to delve deeper into AGL's financials and future prospects, there are 11 additional InvestingPro Tips available at: https://www.investing.com/pro/AGL. Readers interested in leveraging these insights can use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription at InvestingPro. This exclusive offer may provide valuable guidance as AGL continues to evolve under its new executive leadership.
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