Wellness coverage exchange system eHealth (NASDAQ: EHTH) inventory has been crushed slipping above (-80%) off its highs heading into year-finish. The coverage marketplace been given a new CEO just 6 days prior to its Q3 2021 earnings release. The new CEO will come with a strong history in the healthcare market as the Corporation enters the year-conclude open up enrollment period of time. Shares collapsed on a massive prime and bottom-line pass up and on substantially decreased direction going ahead, the worst might be driving it. The new CEO is focusing on bolstering engagement between its around 195,000 people considering the fact that Oct 2020 as far more shoppers seek overall health insurance policies driven by COVID-19 fears. Whilst the on-line company carries on to mature rising growing by in excess of 50%, the contact centre conversion premiums have observed a drastic reduction producing the shortfall. Conversion costs with unassisted on-line applications enhanced with solid fascination in the omnichannel platform. The on the web enterprise is not huge plenty of to offset the contact center shortfalls, but the CEO is trying to improve that. Prudent investors searching for a low-priced entry on a top wellness insurance coverage market can look at for opportunistic pullbacks in shares of eHealth.

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Q3 Fiscal 2021 Earnings Release

On Nov. 8, 2021, eHealth reported its fiscal Q3 2021 final results for the quarter ending September 2021. The Corporation documented earnings-for every-share (EPS) loss of (-$1.78) versus consensus analyst estimates for a loss of (-$1.13), a (-$.65) miss. Revenues fell (-32.2%) year-over-year (YoY) to $63.9 million, missing analyst estimates for $94.2 million.  

Lowered Guidance

The Firm lowered its total-12 months 2021 EPS to a variety of (-$1.13) to (-$.43) compared to $2.91 consensus analyst estimates. Total-12 months 2021 revenues have been reduced to $535 million to $575 million vs . $690.84 million consensus analyst estimates.

Meeting Simply call Takeaways

Recently appointed CEO Frank Soistman introduced himself, As you know, I became CEO of eHealth just 1 7 days ago today. I’ve acquired a heat welcome from our incredibly gifted workforce, and I glance forward to operating jointly in the years forward. In advance of I evaluation our monetary and operating results for the quarter, I want to take a handful of minutes to introduce myself, and share why I am thrilled and energized to be foremost eHealth. As a little bit of track record on me, I have invested approximately 40 yrs in the health care business which include serving as President of Federal government Providers for Aetna, pre and put up-acquisition by CVS Health and fitness, where I was liable for foremost the strategic execution, and rewarding progress strategies for Aetna ‘s Medicare, Medicaid, particular person and public exchange, and federal employee’s health and fitness advantage corporations. Even though there, I built and led a team that realized sustained accelerated revenue and earnings growth, coupled with strong stars rating in compliance efficiency, amid many other accomplishments. Prior to my time at Aetna, I served in govt management positions throughout a quantity of healthcare and managed treatment providers, like Coventry Healthcare, Principal Health care, and CareFirst BlueCross BlueShield in Maryland.”

He continued, I realize that I am transitioning into the CEO purpose in this article at eHealth at a critical point, the evolution of the Medicare distribution marketplace. I prepare to leverage my multi-decades-extended working experience in health care and managed treatment to additional fortify our relationships with carrier associates, make improvements to knowledge movement concerning events, and increase the life span benefit of enrollments we supply. My original concentration as CEO is on our execution in the yearly enrollment period.

The 10 months of AEP are a crucial time when we function at our peak capability in call centre utilization and produce a substantial part of our complete annual Medicare enrollments and revenues. Even though a good deal of preparation takes place in the weeks and months prior to the enrollment time, the execution throughout AEP is important. We are monitoring the success of our diversified marketing and advertising plans and the functionality of our telesales organization day by day. And we’re creating program corrections in serious-time. And we are going to use this insight to enhance our go-forward AEP strategy and execution. This yr, a range of critical initiatives and improvements had been implemented ahead of AEP. 1 common thread amid them is our improved concentration on enrollment quality. Most likely the most essential modify that took place operationally considering the fact that final AEP entails our telesales corporation. Before this calendar year, we have created an intense pivot in our telesales channel to a design-driven predominantly by in-residence income brokers. We introduced a key expertise acquisition marketing campaign and have the biggest course of entire-time agents in our background, productively recruited and onboarded. We entered this AEP with much more than 95% of our telesales ability produced up of interior agents, ahead of our preliminary purpose of 90%. 2nd, we took a quantity of methods to further improve buyer practical experience and enrollment good quality on our system. This consists of the addition of an enrollment verification stage for telephonic enrollments, as well as supplemental coaching for our agent force.”

Recent Initiatives

CEO Soistman concluded, “During the Q4 earnings phone, I approach to share far more about my assessment with the Company’s foundation and path, as perfectly as highlights of our strategic strategy for 2022. I have also observed that the mission-driven mother nature of this Firm is incredibly critical to our personnel. And I intend to continue to be correct to the Company’s core mission of connecting eHealth buyers with excellent, reasonably priced well being insurance selections, and a mission that has not improved considering that eHealth’s inception. By way of the latest initiatives, we have heightened our emphasis on enrollment top quality, and purchaser retention, and this will keep on being a important component of our execution likely ahead. I see options to improve the effectiveness of our revenue by dedicating our call center agents to far more defined geographies so that they can be even additional responsive to shoppers and present deeper insights until finally readily available prepare selections. I hope to be prepared to share more specifics with you for the duration of our Q4 ’21 earnings get in touch with. A different possibility space is to have our brand stand not only for provider agnostic choice, but also to be more and more observed as a dependable resource or clearinghouse of appropriate health care-connected substance to enable consumers navigate the advanced healthcare method. I also feel there is an chance to broaden our platform past our recent concentrate on revenue and enrollment to really encourage recent potential eHealth users to take a look at our web site routinely. In my knowledge, this is vital to building loyalty and drawing people to our platform calendar year-spherical fairly than just during the enrollment intervals. I also see the online company as a critically vital element of eHealth’s organization product.”

EHTH Opportunistic Pullback Degrees

Using the rifle charts on the weekly and everyday time frames deliver a precision view of the landscape for EHTH inventory. The weekly rifle chart coiled to peak in close proximity to the $47.95 Fibonacci (fib) amount. Shares tanked on earnings effects and carries on to market-off on the falling 5-interval moving regular (MA) at $27.92 followed by the 15-time period MA at $36.93. The weekly stochastic crossed down beneath the 20-band with weekly reduced Bollinger Bands (BBs) at $15.95. The every day rifle chart downtrend is beginning to stall as the 5-interval MA begins to slope back again up at $22.73 toward the flattening 15-time period MA at $24.33. The day by day stochastic formed a mini pup as it reaches to the 20-band to bring about the day by day industry structure reduced (MSL) buy signal on breakout by means of $24.49. The everyday decreased BBs are starting off to compress at the $14.90 fib. Prudent traders can view for opportunistic pullback ranges at the $22.34 fib. $21.07 fib, $19.43 fib, $17.49 fib, $15.93 fib, and the $14.90 fib. Upside trajectories range from the $31.33 fib up towards the $45.16 fib level.   
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