Health Net Inc. (NYSE:HNT) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 1.89%.
Health Net Inc. Earnings Cheat Sheet
Results: Adjusted Earnings Per Share increased 173.68% to $0.52 in the quarter versus EPS of $0.19 in the year-earlier quarter.
Revenue: Decreased 2.78% to $2.74 billion from the year-earlier quarter.
Actual vs. Wall St. Expectations: Health Net Inc. reported adjusted EPS income of $0.52 per share. By that measure, the company beat the mean analyst estimate of $0.51. It missed the average revenue estimate of $2.74 billion.
Quoting Management: “We produced solid operating improvement in each line of business in the second quarter of 2013. G&A costs were higher than our expectations primarily due to the reinstated Medicaid premium tax expenses and increased spending to prepare for health care reform and the implementation of California’s Coordinated Care Initiative,” said Jay Gellert, Health Net’s chief executive officer.
Key Stats (on next page)…