Health Net Inc. and Capstone Turbine Corp. reported earnings on Thursday.
Health Net Inc. posted significantly higher third quarter earnings based on favorable reimbursement adjustments from the state of California.
The Woodland Hills insurer said it had net income of $66.8 million (83 cents a share) for the quarter ended in Sept. 30, compared to $18 million (22 cents) for the same period last year. Revenue grew 1 percent to $2.6 billion.
Analysts on average expected earnings of 59 cents a share on revenue of $2.72 billion, according to Thomson Financial Network.
The company said it received higher Medi-Cal compensation rates from the Department of Health Care Services. Chief Executive Jay Gellert added the company will benefit from health reform.
“The rate adjustments that occurred in the third quarter of 2013 will help compensate for general and administrative spending in the fourth quarter as we prepare for 2014,” he said in a statement. “We continue to achieve significant milestones in our preparations for the compelling opportunities in front of us in 2014 and beyond.”
Shares closed down $1.97, or 6.7 percent to $27.60, on the New York Stock Exchange.
Capstone Turbine Corp. reported strong growth in revenue and margins in its fiscal second quarter, despite failing to meet Wall Street expectations.
The Chatsworth maker of small turbines reported a net loss of $3.9 million (-1 cent a share) in the second quarter ended Sept. 30, compared with a net loss of $6.8 million (-2 cents) for the same quarter a year earlier. Revenue rose 17 percent to $35.3 million.
Analysts had expected the company to lose 1 cent on revenue of almost $39 million, according to Thomson Financial Network.
Capstone Chief Executive Darren Jamison said the quarter produced a healthy increase in the company’s margins, which jumped 88 percent year-over-year to $4.9 million.
“During the second quarter, we delivered a healthy gross margin increase year-over-year while successfully focusing on cash conversion," he said in a prepared statement.
Shares closed down 6 cents, or 5.5 percent, to $1.12 on the Nasdaq.