Health Insurance Innovations Earnings: Here’s Why Investors Don’t Like These Results

Health Insurance Innovations Inc (NASDAQ:HIIQ) had a loss and missed Wall Street’s expectations, BUT beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are down 3.74%.

Health Insurance Innovations Inc  Earnings Cheat Sheet

Results:

Revenue: Decreased 0% to $13.6 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Health Insurance Innovations Inc reported adjusted EPS loss of $0.08 per share. By that measure, the company missed the mean analyst estimate of $0.1. It beat the average revenue estimate of $13.17 million.

Quoting Management: “We are pleased with our results for the second quarter of 2013, which are in line with the expectations range we discussed in May 2013, ” said Michael Kosloske, Chairman, President and Chief Executive Officer of HII. “In the last three months, we have enhanced our core operations with the introduction of innovative insurance solutions like our short-term medical product launched in cooperation with carrier HCC Life Insurance Company and have continued to grow higher-margin ancillary policy revenues through ancillary product enhancements and bundling of core medical and ancillary products. We have remained focused on executing against our operating plan while adding significant new capabilities through the recent acquisition of Secured. In addition, our experienced team continues to identify and leverage strategic partnerships and opportunities. Together, these initiatives have produced operational traction in 2013 and we believe have positioned us well for 2014, when the Affordable Care Act takes effect, and beyond.”

Key Stats (on next page)…

Revenue increased 9.06% from $12.47 million in the previous quarter. EPS decreased to $-0.08 in the quarter versus EPS of $0.01 in the previous quarter.

Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $0.15 and has not changed. For the current year, the average estimate has moved down from a profit of $0.53 to a profit of $0.5 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)

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