Thursday, May 3, 2012

Health Net (Nasdaq: HNT) misses estimates on delayed claims

Health Net (Nasdaq: HNT) misses estimates on delayed claimsPalm Beach, FL 5/3/12 (StreetBeat) -- Health Net Inc (Nasdaq: HNT) posted an adjusted profit below analysts' expectations as insurance claims spilled over from the previous quarter, prompting the insurer to cut its full-year forecast.

The company now expects a full-year profit of $2.35 to $2.50 per share for its combined Western Region and Government Contracts segments, compared with its earlier forecast of $3.30 to $3.40 per share.

Health Net took a charge in the first quarter from the sale of its Medicare Prescription Drug Plan business to a unit of CVS Caremark Corp.

The company posted a net loss of $26.6 million, or 32 cents per share, compared with a net loss of $108.2 million, or $1.16 per share, a year ago.

Excluding charges from delayed claims and discontinued operations, the company earned 22 cents per share.

Analysts on an average were expecting a profit of 60 cents per share, according to Thomson Reuters I/B/E/S.

Revenue fell 16 percent to $2.83 billion for the quarter.

Shares of the Woodland Hills, California-based company, which have lost about 6 percent in the last three months, fell about 19 percent before the bell. They closed at $36.32 on Wednesday on Nasdaq.

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