Why did Signify Health (SGFY) soar over 30% during pre-market trading?

2 min read | August 22, 2022 06:02 AM PDT | By Rupam Roy

Why is Signify Health, Inc. (NYSE:SGFY) gaining attention?

The stock of Signify Health had created a buzz on Wall Street after reports claimed that Amazon.com, Inc. (NASDAQ:AMZN) is among the potential firms that are expected to bid for the healthcare firm.

The leading e-commerce firm is reportedly competing with CVS Health Corporation (NYSE: CVS), among others, for the healthcare firm. Some reports suggest that UnitedHealth Group Incorporated (NYSE: UNH) is also looking to acquire Signify Health.

The bids are reportedly expected to take place around Labor Day. However, it could be possible that a potential bidder could agree to a deal earlier.

Signify Health Inc. (SGFY) earnings highlights for fiscal 2022 second quarter Source: ©Kalkine Media®; © Canva via Canva.com

Financial highlights:

Signify Health posted its Q2 FY22 earnings on August 3. The home healthcare service provider noted a 16 per cent jump year-over-year (YoY) in its Q2 FY22 revenue of US$ 246.2 million.

Its attributable net loss totalled US$ 370.5 million, or US$ 2.10 per diluted share in Q2 FY22, while no income or loss was recorded in the year-ago quarter.

Talking about its guidance, the firm expects its revenue from the Home & Community Services (HCS) segment to be between US$ 800 million and US$ 810 million in fiscal 2022.

Bottom line

The SGFY stock was priced at US$ 29.15 at 8:26 am ET on August 22, up 37.5 per cent from its previous closing price. The prior session on August 19 closed at US$ 21.20, representing a slump of 2.44 per cent.

Meanwhile, the reported bidding interest of Amazon comes a month after it nodded to acquire the brick-and-mortar doctor's office operator and telehealth solutions provider, One Medical for US$ 3.49 billion. This report marks the increasing interest of the e-commerce giant in the healthcare segment.

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