Health Net Announces Increased Earnings
California-based Health Net on Tuesday reported an 8.8% increase in third-quarter net profit, despite a larger-than-expected decrease in membership, the Hartford Courant reports. The company reported third-quarter net income of $78.2 million, or 67 cents per share, beating analysts' average estimate of 64 cents per share.
Including a $5.2 million pretax charge for severance and benefits for layoffs announced in May 2004, Health Net recorded net income of $71.9 million, or 64 cents per share, in the third quarter of last year.
The company also reported third-quarter revenue of $3.06 billion, up from $2.94 billion in the year-ago quarter. The company forecast full-year 2005 earnings of $1.93 to $1.98 per share, including special charges, or $2.37 to $2.42 per share without the charges. Previously, the company estimated earnings of $1.85 to $2.05 per share for the full year, including charges. The company estimated it would earn 60 to 65 cents per share for the fourth quarter of 2005 and $2.90 per share for fiscal year 2006.
Health Net enrollment decreased nationally by 66,000 members, or 1.9%, during the third quarter of this year. Compared with the year-ago third quarter, membership decreased by 269,000 members, or 7.3%. Health Net had 3.43 million members at the end of the third quarter this year(Levick, Hartford Courant, 11/2).