Amerigroup Has Huge Quarter

The healthcare company blows out the quarter and doubles the low end of full-year guidance.
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Amerigroup

(AGP)

trounced first-quarter earnings targets and doubled the low end of its full-year earnings guidance.

The Virginia Beach, Va., health-care outfit made $37.3 million, or 71 cents a share, for the quarter ended March 31, up from the year-ago $20.4 million, or 39 cents a share. Revenue rose to $674 million from $558 million a year earlier.

The latest quarter includes the reversal of a prior period revenue accrual of $6.3 million and favorable prior-period medical claims development of $34.5 million. Excluding those items, latest-quarter earnings were 24 cents a diluted share. Analysts were looking for a dime-a-share profit on sales of $630 million.

For the year, the company expects to make $1.45-$1.55 a share, up from the previous 70 cents to 85 cents.