Amerigroup Picks Up Gains, Raises Outlook
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.
Copyright 2009 TheStreet.com Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed. AP contributed to this report.
