Coventry Health Earnings Up Sharply
NEW YORK (TheStreet) -- Coventry Health Care (CVH) has raised its full-year earnings guidance after a 169% rise in third-quarter earnings.
Coventry Health Care now expects full-year earnings of $2.74 to $2.84 a share, up from its previous guidance for earnings of $1.72 to $1.87 a share. The consensus target calls for a full-year profit of $2.84 a share, according to Thomson Reuters.
The company said it expects full-year consolidated revenue of $11.47 billion to $11.68 billion vs. the average target of $11.54 billion.
The improved outlook comes as Coventry reported third-quarter net earnings of $189.9 million, or $1.29 a share, up from $70.6 million, or 68 cents a share, in the year-ago quarter.
The company said earnings results include a positive impact from a Medicare Advantage Private Fee-for-Service product of 5 cents a share. Excluding this item, earnings came out to be $1.24 a share.
Analysts, on average, had expected earnings of 67 cents a share.
Operating revenues fell by about 18% to $2.84 billion from the year before, while managed care premiums fell about 19% to $2.54 billion from a year ago. On average, analysts predicted revenue of $2.85 billion.
Coventry said that as of September 30, Medicare Part D membership decreased by 18,000 members from the prior year quarter.
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-- Written by Andrea Tse in New York.
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