eHealth Incurs Wider Loss in Q4, Issues Guidance for 2016
eHealth Inc. EHTH incurred a net loss of 62 cents per share in fourth-quarter 2015, wider than the Zacks Consensus Estimate of a loss of 54 cents. Loss per share was also wider than 47 cents incurred in the prior-year quarter.
Including extra-ordinary items, eHealth digested a loss of 67 cents per share, narrower than $1.08 loss incurred in the year-ago quarter.
Operational Updates
eHealth’s total revenue grossed $50.1 million, better than the Zacks Consensus Estimate of $41 million and up 11% year over year. Revenues improved on higher commissions.
Total operating costs and expenses rose 6.5% year over year to $62.5 million. The increase stemmed from higher marketing and advertising, and general and administrative expenses.
Operating margin for the reported quarter was (21)% against (3)% in the year-ago quarter.
Earnings before interest, tax, depreciation and amortization (EBITDA) was $(9.5) million, narrower than $(12.9) million in the year-ago quarter.
Full-Year Highlights
eHealth reported 2015 operating net loss of 43 cents per share, wider than the year-ago loss of a penny.
Including extra-ordinary items, net loss of eHealth came in at 26 cents per share, narrower than 88 cents loss per share incurred in 2014.
eHealth’s total revenue was $198.5 million, up 5% from 2014.
eHealth exited 2015 with total estimated memberships of more than 1.1 million, which increased 2% from the prior-year level. Total approved members increased 22% year over year to 0.08 million.
Financial Updates
eHealth exited 2015 with cash and cash equivalents of $62.7 million, up from $51.4 million at the 2014-end level.
The company’s total assets as of Dec 31, 2015 were approximately $113.3 million, up from $106.7 million as of Dec 31, 2014.
As of Dec 31, 2015, total stockholders’ equity of eHealth was $76.4 million, up from $73.5 million as of Dec 31, 2014.
Operating cash flow was $13.7 million in 2015 compared with $8.1 million a year ago.
Looking Forward
eHealth projects operating earnings between 38 cents and 68 cents per share on revenues between $195 million and $203 million for 2016. Adjusted EBITDA is estimated between $11.5 million and $17.0 million.
Zacks Rank
Presently, eHealth carries a Zacks Rank #2 (Buy).
Performance by Other Insurance Brokers
The bottom line at Marsh & McLennan Companies, Inc. MMC, Brown & Brown Inc. BRO and Aon plc AON beat their respective Zacks Consensus Estimate in the fourth quarter.
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