eHealth, Inc.
(
EHTH
) has put together three straight quarters of positive EPS
surprises, and will have a chance to do it again when it reports
third-quarter results next week. Shares of this Internet-based
health insurance provider have been enjoying a favorable run of
late, and even hit a 52-week high of $20.36 on October 8. This
Zacks #2 Rank (Buy) also announced a new share repurchase program
in September.
Upcoming 3Q Release
eHealth is scheduled to report its third quarter results on October
25. The Zacks Consensus Estimate is calling for a loss of 1 cent on
expected revenue of $37 million.
On September 10, eHealth's board of directors approved a new share
repurchase program, authorizing the company to buy back shares
worth $30 million.
On July 26, eHealth reported second-quarter 2012 operating earnings
per share of 10 cents, beating the Zacks Consensus Estimate by
100%. It was also way above the year-ago result of 1 cent. Total
revenue dropped 2% year over year to $35.5 million, though it
exceeded the Zacks Consensus Estimate by 4%.
Commission revenue improved 2% while Medicare revenue shot up 130%.
Total approved members in the second quarter increased 19% year
over year. Total operating costs and expenses slipped 0.1% year
over year to $31.3 million.
Guidance and Earnings Estimates Revisions
eHealth projects total revenue between $152 million and $158
million for 2012. Earnings before Interest, Tax, Depreciation and
Amortization (EBITDA) is expected at $21 million to $26 million.
The company sees adjusted earnings for 2012 at 56 cents to 66 cents
per share.
For 2012, the Zacks Consensus Estimate is currently pegged at 36
cents, an increase of 16.1% over the last 90 days. The Zacks
Consensus Estimate for 2013 rose 11.9% to 47 cents over the same
time frame, representing a year-over-year increase of 31.2%.
Market Performance & Technicals
Following the announcement of the share buyback program, the
company's shares moved above its 50-day moving average as well as
the 200-day moving average. Also, shares have increased
approximately 17.3% since eHealth released its second quarter
results.
Volume is strong, averaging roughly 138,700 daily. The year-to-date
return for the stock came in at 36.7%, compared to the Nasdaq's
return of 17.1%.
eHealth Inc. is a leading online based provider of health insurance
for individuals, families and small businesses in the United
States. It has a market capitalization of $396.65 million.
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