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Health Net Beats Earnings Estimate

Health Net Inc. on Wednesday announced quarterly earnings nearly triple what analysts expected, sending the stock higher. The Woodland Hills insurer reported net income of $121 million ($1.49 a share) for the quarter ended June 30, compared to $28.8 million (36 cents) for the same quarter last year. Revenue grew 25 percent to $3.26 billion. Analysts on average expected earnings of 56 cents on revenue of $3.4 billion. The company attributed its performance to individual policies sold on exchanges formed as part of national health care reform. Health Net’s number of Individual policies jumped by 260,000 members, or 226 percent, during the quarter. “Our focused and deliberate strategic approaches to the new opportunities in the exchanges and Medicaid expansion are driving substantial enrollment and revenue growth and higher income,” Chief Executive Jay Gellert said in a statement. “We expect further growth in the second half of 2014.” Shares close up $1.90 or 4.6 percent to $43.62 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.

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