eHealth (NASDAQ:EHTH) shares plunged more than 16% on Tuesday (recovered today – up 9%) despite the company reporting better-than-expected Q4 revenues of $196.3 million (vs. Street’s $179.01 million) and positive outlook.
Q4 adjusted diluted EPS came in at $1.14 came, beating the Street estimate of $0.83 driven by significant margin improvement in Medicare business with ongoing operating cost savings.
Despite the solid earnings beat and positive 2023 guidance, shares plummeted as some commentary around imminent details on a potential capital raise may have struck investors’ attention.