SelectQuote Inc (NYSE:SLQT) shares are trading lower by 54.4% at $2.98 Tuesday morning after the company reported second-quarter EPS and sales were down year-over-year.
SelectQuote reported quarterly losses of 84 cents per share. The company also reported $195.00 million in sales this quarter. This is a 45% decrease over sales of $357.57 million in the same period last year.
Chief Executive Officer Tim Danker commented, "SelectQuote faced a series of unexpected challenges in our core Senior segment this Medicare Advantage season. Overall parity in Medicare Advantage plan features along with delayed hiring drove considerably lower close rates, which negatively impacted profitability. In addition, we recognized a $145 million downward cohort/tail adjustment based primarily on higher intra-year lapse rates and overall lower persistency from the January 2022 renewals. Based on that data, the potential risk discussed during our fourth-quarter earnings call in August 2021 was accelerated."
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SelectQuote is a Direct-to-consumer (DTC) distribution platform which facilitates consumers to shop for health, life and auto & home insurance policies online. The company generates its revenues by selling insurance products on behalf of the insurance carrier partners in the form of commission.
SelectQuote has a 52-week high of $33.00 and a 52-week low of $6.30.
