Health Net, Inc. (HNT) Monday reported a profit for the first quarter, compared to a loss last year, amid a slight decline in revenues and lower expenses. The company raised its full year earnings per share outlook.
The company reported net income of $50.05 million or $0.62 per share, compared to a net loss of $26.6 million or $0.32 per share in the previous year. Loss from continuing operations was $0.10 per share last year.
Earnings in the first quarter of 2012 for the combined Western Region Operations (Western Region) and Government Contracts segments were $8.2 million, or $0.10 per share.
The prior year financial results reflect the treatment of the company's Medicare stand-alone Part D (Medicare PDP) business that was sold on April 1, 2012, as discontinued operations.
On average, 17 analysts polled by Thomson Reuters expected earnings of $0.41 per share for the quarter. Analysts' estimates typically exclude special items.
Health Net's total revenues decreased 1.2 percent to $2.8 billion from $2.83 billion in the prior year. Analysts expected revenues of $2.79 billion.
Total expenses declined in the quarter with reduced expenses for Health plan services and government contracts, in the absence of $23.1 million in Divested operations and services expense last year.
For 2013, the company sees earnings per share of $2.20 to $2.30 and consolidated revenues of $10.7 billion to $11.2 billion.
The company said in January that it expects 2013 earnings per share in a range of $2.00 to $2.10. Consolidated revenues for the combined Western Region Operations and Government Contracts segments in 2013 were anticipated to be in the range of $10.7 billion to $11.2 billion.
Wall Street expects full year earnings of $2.07 per share on revenues of $11.31 billion.
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