eHealth Inc. EHTH reported first-quarter 2015 adjusted net earnings of 19 cents per share, which compared favorably with the Zacks Consensus Estimate of a loss of 20 cents as well as the year-ago loss of 7 cents.

The upside was driven by growth in Medicare commission revenues, higher-than-expected Individual and Family Plan revenues and the ancillary product business expansion. Additionally, the implementation of a cost reduction program contributed to the results positively.


 

Including extraordinary items, net loss of eHealth came in at 12 cents per share, wider than a loss of 8 cents in the year-ago quarter.  

Operational Updates

eHealth’s total revenue amounted to $61.3 million beating the Zacks Consensus Estimate of $46 million and increasing 20% year over year. Increase in commission revenues, and Medicare-related revenues mainly led to the upside. High Medicare-related revenues were, in turn, largely attributable to strong renewal commission revenue on eHealth’s existing book of business and an increase in new Medicare members.  

Total operating costs and expenses rose 17.1% year over year to $63.3 million.

Operating margin for the reported quarter was (3)% as against (6)% in the year-ago quarter.

Adjusted earnings before interest, tax, depreciation and amortization (EBITDA) were $5.8 million compared with $0.7 million in the year-ago quarter.

Total estimated memberships for eHealth as of Mar 31, 2015 were nearly 1.2 million, which declined 10% from 1.3 million as of Mar 31, 2014. Total approved members increased 16% year over year to 0.33 million in the first quarter.

Financial Updates

Cash and cash equivalents for eHealth as of Mar 31, 2015 were $39.4 million, down from $51.4 million at year-end 2014. The decrease was attributable to the acquisition of property and equipment, and the amounts used to net-share settle equity awards and for operating activities.

The company’s total assets as of Mar 31, 2015 were approximately $98.8 million, down from $106.7 million as of Dec 31, 2014.

As of Mar 31, 2015, total stockholders’ equity of eHealth was approximately $73 million, declining slightly from $73.5 million as of Dec 31, 2014.

Operating cash inflow was $11.2 million in the first quarter compared with a cash outflow of $5.4 million a year ago.

Other Insurance Brokers

Brown & Brown Inc. BRO reported adjusted earnings per share last week that were in line with the Zacks Consensus Estimate. Other insurers like Aon plc AON and Willis Group Holdings plc WSH are scheduled to report results shortly.

Zacks Rank

Presently, eHealth holds a Zacks Rank #2 (Buy).
 

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