Triple-S Management Earnings: Here’s Why Investors are Ambivalent Now

Triple-S Management Corporation (NYSE:GTS) 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.

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Triple-S Management Corporation Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 161.9% to $0.55 in the quarter versus EPS of $0.21 in the year-earlier quarter.

Revenue: Decreased 0.04% to $589.6 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Triple-S Management Corporation reported adjusted EPS income of $0.55 per share. By that measure, the company beat the mean analyst estimate of $0.35. It missed the average revenue estimate of $591.83 million.

Quoting Management: Commenting on the period’s results, Ramon M. Ruiz-Comas, President and Chief Executive Officer of Triple-S Management Corporation, said, “We are pleased with our overall performance, and more specifically, that the measures implemented last year in the Medicare Advantage (NYSE:MA) business are beginning to have a positive impact in the first quarter of 2013. Of particular note is the substantial improvement in the Managed Care MLR, which fell by 480 basis points year over year, and with reductions in the three segments, Commercial, MA and stand-alone PDP.”

Key Stats (on next page)…

Revenue decreased 2.22% from $603 million in the previous quarter. EPS increased 3.77% from $0.53 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 $0.55 to a profit $0.5. For the current year, the average estimate has moved down from a profit of $2.05 to a profit of $1.99 over the last ninety days.

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