SelectQuote Inc. shares plummeted 23% to $1.40 after the company swung to a loss and saw revenue decline in the latest quarter and its guidance for fiscal 2023 guidance came in below analysts’ expectations.
SelectQuote, a direct-to-consumer distribution platform that offers consumers policies from a range of insurance carriers, swung to a net loss of $104.7 million, or 64 cents a share, for the fourth quarter ended June 30. That compared with a profit of $796,000, or zero earnings per-share, a year earlier. Analysts polled by FactSet expected a loss of 18 cents a share.
Revenue declined to $139.4 million from $185.3 million last year. Analysts polled by FactSet expected $199.4 million.
The company forecast revenue of between $850 million to $950 million and a loss between $89 million to $113 million for fiscal 2023. Analysts polled by FactSet expected revenue of $910.8 million and a loss of $54.9 million.
“Our goal is to optimize our core senior and healthcare services businesses with a focus on improving returns and higher visibility in our projected cash flows,” Chief Executive Tim Danker said.