Coventry Health Care Inc. Earnings: Profitable Quarter Accelerates Growth

S&P 500 (NYSE:SPY) component Coventry Health Care Inc. (NYSE:CVH) reported net income above Wall Street’s expectations for the second quarter. Coventry Health Care, Inc. operates health plans, insurance companies, network rental and workers’ compensation services companies.

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Coventry Health Care Earnings Cheat Sheet for the Second Quarter

Results: Net income for Coventry Health Care Inc. rose to $224.5 million ($1.51 per share) vs. $1 million (one cent per share) in the same quarter a year earlier. This marks a substantial increase from the year earlier quarter.

Revenue: Rose 5.1% to $3.03 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: CVH reported adjusted net income of 83 cents per share. By that measure, the company beat the mean estimate of 76 cents per share. Analysts were expecting revenue of $3.01 billion.

Quoting Management: “Continuing the momentum that was built during the first quarter, the outstanding second quarter results that we are reporting today are a product of strong financial and operational execution in each of our businesses,” said Allen F. Wise, chairman and chief executive officer of Coventry. “More importantly, we are pleased with the positioning of our businesses and are excited about seizing future growth opportunities including our recent Medicaid award with the Commonwealth of Kentucky.”

Key Stats:

The company has now seen net income rise in three straight quarters. In the first quarter, net income rose 13.3% and in the fourth quarter of the last fiscal year, the figure rose 37.8%.

The company has now topped analyst estimates for the last four quarters. It beat the mark by 13 cents in the first quarter, by 7 cents in the fourth quarter of the last fiscal year, and by 57 cents in the third quarter of the last fiscal year.

The company’s revenue has now risen for two straight quarters. In the first quarter, revenue increased 6.6% to $3.07 billion from the year earlier quarter.

Competitors to Watch: UnitedHealth Group Inc. (NYSE:UNH), Aetna Inc. (NYSE:AET), Health Net, Inc. (NYSE:HNT), WellCare Health Plans, Inc. (NYSE:WCG), Universal American Corp. (NYSE:UAM), WellPoint, Inc. (NYSE:WLP), CIGNA Corporation (NYSE:CI), Humana Inc. (NYSE:HUM), Centene Corporation (NYSE:CNC), and Magellan Health Services, Inc. (NASDAQ:MGLN).

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(Source: Xignite Financials)

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