Health Net Q2 Earnings Rise
Woodland Hills-based health insurer Health Net on Thursday announced second-quarter earnings of $77 million, or 65 cents per share, compared to $53.6 million, or 47 cents per share, in the same period last year, the Los Angeles Daily News reports. Despite the increase, Health Net's earnings were short of analysts' estimate of 66 cents per share.
Revenue in the quarter increased to $3.27 billion from $3.02 billion a year ago. In addition, health plan enrollment over the quarter increased by 22,000 members to 3.4 million. The increase represents the first sequential enrollment growth in more than two years. Health plan costs accounted for 83.3% of revenue, compared with 84.6% in the year-ago period.
The company expects full-year earnings between $3 and $3.05 per share.
Health Net officials said they were pleased with the second quarter results and the outlook for the future.
Merrill Lynch analyst Doug Simpson said analysts believe the insurer will be acquired by another company "but there is still some considerable debate about (the) price and timing of an offer" (Wilcox, Los Angeles Daily News, 8/4).