Managed health care services provider Health Net Inc. (HNT) on Friday reported a surge in profit for the second quarter, helped by a gain.
Net income surged to $124.6 million or $1.48 per share from $58.3 million or $0.63 per share in the prior year. The latest results included $119.4 million net gain from the sale of discontinued operations.
On average, 16 analysts polled by Thomson Reuters expected earnings of $0.66 per share for the quarter. Analysts' estimates typically exclude special items.
Total revenues increased 7.1 percent to $2.84 billion from $2.65 billion in the second quarter of 2011. Analysts expected revenues of $2.80 billion.
Income from continuing operations was $5.17 million compared to last year's $56.81 million.
Total expenses climbed to $2.83 billion from $2.57 billion. The company noted that higher than expected commercial health care and Medicaid health care costs affected results.
Health Net reduced its 2012 full-year guidance for GAAP earnings per share to a range of $1.45 to $1.55 from the previous outlook of $2.85 to $3.00. Wall Street looks for earnings of $2.28 per share.
For comments and feedback: editorial@rttnews.com