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Shares of health care delivery and payment solutions firm Evolent Health (EVH) surged in midday trading after reporting third quarter operating results and guidance for the remainder of the year. THIRD QUARTER: The company reported a Q3 loss per share of (4c) on revenue of $150.2M. Analysts were expecting a (4c) loss per share on revenue of $157.11M. Evolent also reported Q3 adjusted EBITDA of $4.8M compared to $2.6M for the same time period last year. GUIDANCE: For the three months ended December 31, revenue is expected to be in the range of $185M-$190M, ahead of analyst views of $177.8M. Adjusted EBITDA is expected to be in the range of approximately $5M-$7M. For the full year 2018, revenue is expected to be in the range of approximately $624M-$629M, against analyst consensus views of $588.58M, CEO COMMENTARY: Frank Williams, the company's chief executive officer, commented, "We are quite pleased with our third quarter results and our continued strong performance in 2018. Coupled with the recent positive movement in the health care policy environment, our success in driving clinical and financial improvement for our partners has served as a catalyst in growing our pipeline and adding nine new partners to the Evolent network this year." EVOLENT TO SUPPORT SOMOS IPA NETWORK: Evolent Health and SOMOS IPA announced that Evolent will support the SOMOS IPA network in its operations as a Value-Based Payment, VBP, Innovator in the New York State Department of Health's Innovator program. As announced by the New York State Department of Health, SOMOS IPA has received a new contracting designation as a Value-Based Payment Innovator. The Innovator program is intended to encourage and reward early adoption of Value-Based Payment arrangements, supporting groups who have invested in moving toward population health management. With its Innovator designation, SOMOS aims to transform the communities it serves by reintroducing the family doctor and strengthening the bond between doctor and patient. ANALYST SEES BUYING OPPORTUNITY: Canaccord analyst Richard Close said the recent weakness in Evolent Health is a buying opportunity. The analyst cited its solid Q3 results and sees the regulatory environment as being favorable for stable growth over the next few years. Close reiterated his Buy rating and $28 price target on Evolent Health shares. PRICE ACTION: Shares of Evolent Health are up 13.3% to $25.90 in early afternoon trading.