Health Net (NYSE: HNT) — one of 30 companies listed on Executive Mosaic’s GovCon Index — has reported third quarter earnings of 96 cents per share to meet the consensus forecast of Wall Street analysts and exceed prior year figures by 24 cents.Third quarter profit 3.22 percent year-over-year to $60.25 million and revenue was $4.15 billion, roughly flat from the same quarter last year.
Wall Street analysts expected the Los Angeles-based health technology and services company to report $4.17 billion in third quarter revenue.
Government contracts revenue rose 13.9 percent from the same period last year to $160.66 million on increased activity in the Department of Veterans Affairs‘ Patient-Centered Community Care program.
Health Net lowered its full-year earnings guidance to between $2.50 and $2.70 earnings per share based on General Accepted Accounting Principles from the prior outlook of $2.70 on a GAAP basis.
The company attributed its lowered forecasts to costs in connection with Centene‘s (NYSE: CNC) pending $6.9 billion acquisition of Health Net and the suspension of a services contract with Cognizant due to that combination.
Prior to the stock market open Monday, shares of Health Net were up 21.15 from the year’s start and have risen 31.04 over the past 12 months.
