Health Net Earnings: Everything You Must Know Now

Health Net Inc. (NYSE:HNT) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company.

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Health Net Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 520% to $0.62 in the quarter versus EPS of $0.10 in the year-earlier quarter.

Revenue: Decreased 0.4% to $2.8 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Health Net Inc. reported adjusted EPS income of $0.62 per share. By that measure, the company beat the mean analyst estimate of $0.41. It beat the average revenue estimate of $2.79 billion.

Quoting Management: “We are pleased with our 2013 first quarter results, especially the improvement in our commercial performance,” said Jay Gellert, Health Net’s chief executive officer. “As a result of our efforts to reposition our large group commercial business going into 2013 and stronger overall commercial performance driven by lower utilization, we are raising full year 2013 earnings per diluted share guidance to a range of $2.20 to $2.30.”

Key Stats (on next page)…

Revenue decreased 0.77% from $2.82 billion in the previous quarter. EPS increased 72.22% from $0.36 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.54 to a profit $0.50. For the current year, the average estimate has moved down from a profit of $2.10 to a profit of $2.07 over the last ninety days.

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