82.1 F
San Fernando
Friday, Mar 29, 2024
Array

Health Net Reports Lower Earnings

Health Net Inc. reported sharply lower earnings for the second quarter that nevertheless exceeded analyst expectations. The Woodland Hills insurance company on Tuesday reported net income of $58.4 million (75 cents a share) for the quarter ended June 30, compared to income of $121 million ($1.49) for the same quarter a year ago. Revenue increased 22 percent to $4.16 billion. Adjusted for one-time events, the company’s net income was 95 cents a share. Analysts on average expected net income of 89 cents on revenue of $4.21 billion, according to Thomson Financial Network. During the quarter, the company spent $26.4 million on a project to streamline its information technology systems. But that project was suspended when Health Net announced on July 2 a merger agreement with Centene Corp. in St. Louis. Under the agreement, Health Net would be absorbed into Centene and its headquarters would move from the San Fernando Valley to St. Louis. “We intend to continue a disciplined execution of our strategy as we work to complete the Centene merger transaction,” Jay Gellert, Health Net’s chief executive, said in a statement. Shares closed up 70 cents or 1 percent to $68.65 on the New York Stock Exchange.

Joel Russel
Joel Russel
Joel Russell joined the Los Angeles Business Journal in 2006 as a reporter. He transferred to sister publication San Fernando Valley Business Journal in 2012 as managing editor. Since he assumed the position of editor in 2015, the Business Journal has been recognized four times as the best small-circulation tabloid business publication in the country by the Alliance of Area Business Publishers. Previously, he worked as senior editor at Hispanic Business magazine and editor of Business Mexico.

Featured Articles

Related Articles