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Amerigroup Jumps on Beat

Earnings surpass estimates by a dime.
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Amerigroup

(AGP)

soared 12% Friday after beating third-quarter estimates and guiding higher for the year.

The Virginia Beach, Va., insurer also agreed to settle a class action suit in exchange for a $5 million fund set up by its insurance carrier.

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Amerigroup made $25 million, or 46 cents a share, for the quarter ended Sept. 30, reversing the year-ago loss of $2 million, or 4 cents a share. Revenue rose to $709 million from $587 million a year earlier.

Analysts surveyed by Thomson Financial were looking for a 32-cent profit on sales of $719 million.

Amerigroup boosted its full-year earnings target to a range of $1.79 to $1.81 a share from the previous $1.63-$1.68 range, and said it expects to make $1.80 to $1.95 a share next year.

Analysts were looking for $1.19 this year and $1.58 next.

Shares rose $4.04 to $36.86.