eHealth ( EHTH Quick Quote EHTH - Free Report) reported fourth-quarter 2020 adjusted net earnings of $2.32 per share, which beat the Zacks Consensus Estimate by 4.5%. The bottom line rebounded from the year-ago loss of 36 cents. Fourth-quarter results reflect sturdy performance at Individual, Family and Small Business segment. However, a soft Medicare segment was a partial offset. Operational Update
Total revenues were $293.3 million, down 2.8% year over year, primarily due to lower commission (down 10% year over year). However, the top line beat the Zacks Consensus Estimate by 0.3%.
Revenues from the Medicare segment were $269.9 million, down 5% year over year while revenues at Individual, Family and Small Business segment increased 22% year over year to $23.4 million. Total operating costs and expenses decreased 19.8% year over year to $213.9 million, attributed to higher marketing and advertising, customer care and enrollment and technology and content. Adjusted EBITDA declined 41% year over year. Medicare segment profit was $82.6 million, down 45% year over year while that of Individual, Family and Small Business segment surged 91% year over year to $15.9 million. Approved members for all Medicare products, which include Medicare Advantage, Medicare Supplement and Medicare Part D Prescription Drug Plans, were 281,044, up 3% year over year. Approved members for Medicare Advantage products of 217,278 increased 30% year over year. Approved members for major medical individual and family plan products were 14,281 down 2% year over year. Total estimated membership as of Dec 31, 2020 was 1,285,346, up 12% from 2019 end. eHealth, Inc. Price, Consensus and EPS Surprise Financial Update
Cash and cash equivalents at year-end increased 86.5% from the 2019 level to $43.8 million.
Shareholders’ equity increased 58.9% from Dec 31, 2019 to $837.6 million as of Dec 31, 2020. Net cash used in operating activities was $107.9 million in 2020 compared with net cash used in operating activities of $71.5 million used in 2019. 2021 Guidance
Adjusted earnings per share are estimated between $2.77 and $3.26.
Total revenues are estimated between $660 million and $700 million. Revenues from the Medicare segment are estimated between $621 million and $659 million. Revenues from the Individual, Family and Small Business segment are estimated between $39 million and $41million. Adjusted EBITDA is estimated between $100 million and $115 million. Medicare segment profit is estimated between $138 million and $155 million. For Individual, Family and Small Business segment, profit is estimated between $18 million and $19 million. Cash used in operations is estimated between $85 million and $95 million Zacks Rank
Currently, eHealth carries a Zacks Rank #5 (Strong Sell).
You can see . the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here Performance of Other Insurers
Of the insurance industry players that have reported fourth-quarter results so far,
The Travelers Companies ( TRV Quick Quote TRV - Free Report) , W.R. Berkley Corporation ( WRB Quick Quote WRB - Free Report) and Brown & Brown ( BRO Quick Quote BRO - Free Report) beat earnings estimates. These Stocks Are Poised to Soar Past the Pandemic
The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.
Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early. See the 5 high-tech stocks now>>