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Tuesday, Feb 7, 2023

Health Net Earnings Wow

Health Net Inc. reported adjusted first quarter net income on Monday that nearly doubled after gaining half a million policyholders. The Woodland Hills insurance company reported net income of $30 million (39 cents a share) for the quarter ended March 31, compared to $28.8 million (36 cents) for the same quarter a year ago. Revenue rose 28 percent to $3.7 billion. However, taking into account one-time events, the company had adjusted net income of 74 cents a share. Health Net reported a $47 million pretax charge related to Health Net’s previously announced deal with Cognizant Technology Solutions Corp. to streamline its technology and administrative systems. Analysts on average expected net income of 69 cents on revenue of $4.1 billion, according to Thomson Financial Network. The company said that consolidated enrollment for the western region grew from 2.6 million members to 3.1 million policyholders in the last year. “This increase of nearly 20 percent was driven largely by individual exchange and Medicaid expansion growth in California,” the company stated. The company also reported that “moderate health care cost trends” and lower general and administrative expenses contributed to results. Health Net increased its full-year earnings guidance by 10 cents to a range of $3.25 to $3.35 a share. Shares closed up $1.70, or 3.2 percent, to $54.70 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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