PacifiCare Reports 34% Earnings Increase, Citing Lower Costs, Growing Membership
Cypress-based PacifiCare Health Systems on Thursday reported a 34% increase in third-quarter profit compared with earnings for the same period last year, the Los Angeles Times reports. Company officials attributed the earnings increase to lower health care costs, tax settlements, and growing membership and premiums.
PacifiCare reported net income of $118 million, or $1.21 per share, for the quarter ending Sept. 30, compared with $88 million, or 94 cents per share, a year earlier. Revenue increased by 21% to $3.8 billion. Earnings exceeded Wall Street analysts' expectations.
PacifiCare reported $9 million of costs related to the proposed $8 billion merger with UnitedHealth Group.
The insurer reported that senior membership increased by 7%, adding about 50,000 members to its Secure Horizons program during the past three months. However, commercial membership in its other plans is expected to remain flat for the year.
PacifiCare boosted its 2005 earnings-per-share projection to $3.86 to $3.91 from a range of $3.70 to $3.85 (Vrana, Los Angeles Times, 10/28).