Back to top

Analyst Blog

eHealth Inc. reported its third-quarter 2013 net income of 1 cent per share, missing the Zacks Consensus Estimate by a penny. Results were in line with the year-ago quarter.

Increase in expenses exceeded revenue growth, which in turn, impacted the bottom line.

Operational Updates

eHealth’s total revenues grossed $42 million during the reported quarter, surpassing the Zacks Consensus Estimate by 5%. The result also improved 11.8% year over year.

Total operating costs and expenses also increased 12.2% year over year to $41.6 million owing to greater marketing and advertising activities, technology and content and general and administrative expenses.

Operating margin contracted by 190 basis points (bps) as rise in operating expenses weighed down on revenue growth during the quarter.

Submitted applications for individual and family products grew 3% year over year, along with approved members also rising 13% from the year-ago period.

eHealth exited the quarter with total membership of near 1.1 million which soared 24% from the numbers recorded as of Sep 30, 2012. Total approved members including Medicare plan, individual and family plan, and other product members also improved 21% from the third-quarter end level of 2012.

Financial Updates

eHealth exited the quarter with cash and cash equivalents of $97.7 million, down 30.6% from the 2012 year-end level.

eHealth’s total assets as of Sep 30, 2013 was approximately $161.1 million, declining 17.9% from the 2012 year-end level.

As of Sep 30, 2013, total stockholders’ equity of eHealth stood at $128.8 million, down 24.6% from $170.9 million recorded as of Dec 31, 2012.

Net cash provided by the operating activities of eHealth increased 25.2% in the reported quarter.

Capital expenditure increased substantially to $2.9 million from about $1 million in the year-ago quarter.


eHealth expects full year 2013 net earnings of 61–71 cents per share on revenues of $168–174 million.

Performances by Other Insurance Brokers

Validus Holdings Ltd. (VR - Free Report) reported its third-quarter 2013 adjusted net operating income of $1.50 per share, significantly surpassing the Zacks Consensus Estimate of $1.29 per share. The results however, fell 13.8% year over year.

Brown & Brown Inc. (BRO - Free Report) reported its operating net income of 40 cents per share for the third quarter of 2013, which missed the Zacks Consensus Estimate by a penny. Nevertheless, the results improved 14.7% from the year-ago period.

Another insurance broker, Marsh & McLennan Companies Inc. (MMC - Free Report) , with a Zacks Rank #2 (Buy), is scheduled to report its third-quarter 2013 earnings results on Nov 6, 2013.

Zacks Rank

eHealth Inc. presently carries a Zacks Rank #3 (Hold).

In-Depth Zacks Research for the Tickers Above

Normally $25 each - click below to receive one report FREE:

Marsh & McLennan Companies, Inc. (MMC) - free report >>

Brown & Brown, Inc. (BRO) - free report >>

Validus Holdings, Ltd. (VR) - free report >>