eHealth, Inc. (EHTH) has reported an 85.32 percent jump in profit for the quarter ended Mar. 31, 2017. The company has earned $33.42 million, or $1.80 a share in the quarter, compared with $18.03 million, or $0.99 a share for the same period last year. On the other hand, adjusted net income for the quarter stood at $35.81 million, or $1.93 a share compared with $20.13 million or $1.10 a share, a year ago.
Revenue during the quarter grew 6.90 percent to $78.94 million from $73.84 million in the previous year period.
Total expenses come down
Operating income for the quarter was $31.82 million, compared with $23.68 million in the previous year period.
However, the adjusted operating income for the quarter stood at $34.22 million compared to $25.78 million in the prior year period. At the same time, adjusted operating margin improved 844 basis points in the quarter to 43.34 percent from 34.90 percent in the last year period.
For financial year 2017, eHealth, Inc. forecasts revenue to be in the range of $165 million to $175 million. It projects net loss to be in the range of $27.80 million to $29.80 million. It expects diluted loss per share to be in the range of $1.49 to $1.59. It expects diluted loss per share to be in the range of $0.86 to $0.96 on adjusted basis for the same period.
Meanwhile, income from fees and commission for the quarter increased by 9.79 percent or $6.80 million to $76.18 million.
Scott Flanders, chief executive officer of eHealth stated, "Our first quarter results demonstrate the significant revenue and earnings generation potential of our Medicare business as well the operating and financial leverage inherent in our individual and family plan business, which continues to be solidly profitable despite the challenging market environment and declining member base. At the same time, first quarter results reflect the ongoing regulatory challenges in the individual and family market as well as a number of strategic changes we are making, including a shift in our Medicare marketing strategy and a stronger emphasis on Medicare member profitability, each of which impacted our Medicare application volumes during the quarter."
Operating cash flow improves significantly
eHealth, Inc. has generated cash of $8.43 million from operating activities during the quarter, up 79.43 percent or $3.73 million, when compared with the last year period.
The company has spent $1.66 million cash to meet investing activities during the quarter as against cash outgo of $0.41 million in the last year period.
The company has spent $0.33 million cash to carry out financing activities during the quarter as against cash outgo of $0.30 million in the last year period.
Cash and cash equivalents stood at $68.23 million as on Mar. 31, 2017, up 2.31 percent or $1.54 million from $66.69 million on Mar. 31, 2016.
Assets grow, liabilities fall
Total assets increased 6.43 percent or $8.04 million to $133.12 million on Mar. 31, 2017. On the other hand, total liabilities were at $20.26 million as on Mar. 31, 2017, down 30.33 percent or $8.82 million from year-ago.
Return on assets stood at 25.11 percent in the quarter, up 10.69 from 14.42 percent in the last year period. At the same time, return on equity was at 29.61 percent in the quarter, up 10.83 from 18.79 percent in the last year period.
Shareholders equity stood at $112.86 million as on Mar. 31, 2017, up 17.56 percent or $16.86 million from year-ago.
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