Universal American Earnings: Here’s Why Shares are Down Now

Universal American Corp (NYSE:UAM) had a loss and missed Wall Street’s expectations, AND 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 0.34%.

Universal American Corp Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased to $-0.02 in the quarter versus EPS of $0.09 in the year-earlier quarter.

Revenue: Decreased 1.49% to $534 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Universal American Corp reported adjusted EPS loss of $0.02 per share. By that measure, the company missed the mean analyst estimate of $0.15. It missed the average revenue estimate of $538.22 million.

Quoting Management: Richard Barasch, Chairman and Chief Executive Officer of Universal American Corp. commented, “We are thrilled to expand our relationship with the Oregon Health Authority and the Department of Human Services. We have been an integral partner since 2009, coordinating care for the citizens of Oregon and delivering significant cost savings over that entire period. This expansion is another wonderful opportunity to make positive clinical impacts for the people of Oregon.”

Key Stats (on next page)…

Revenue decreased 5.19% from $563.26 million in the previous quarter. EPS decreased to $-0.02 in the quarter versus EPS of $0.20 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 $0.67 to a profit of $0.66 over the last ninety days.

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