Amerigroup Picks Up Gains, Raises Outlook

Amerigroup posts a 10% rise in quarterly profit and raises its full-year outlook.
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Health insurer

Amerigroup

(AGP)

posted a 10% rise in quarterly profit as premium revenue rose, and raised its full-year outlook.

Earnings during the quarter reached $36.9 million, or 69 cents a share, compared with $33.6 million, or 62 cents a share, in the year-ago period. Analysts forecast earnings of 51 cents a share

Revenue grew 7% to $1.23 billion from $1.07 billion last year.

While membership is lower than a year ago, it grew 4.9% over the last three months.

The company expects full-year earnings in the range of $2.70 to $2.85 a share, predicting an increase in membership.

Earlier this week rival

Cigna

(CI) - Get Report

posted better-than-expected earnings but cut its guidance, citing a decrease in membership. While

Aetna

(AET)

matched analysts' expectations, inking a 1% increase in first-quarter profit.

Shares of Amerigroup fell 4% to $28.71 in morning trading, while Cigna remained relatively flat at $19.70 and Aetna gained 1% to $22.31.

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