Why eHealth, Inc. (NASDAQ:EHTH) Shares Popped More than 25% on Friday


eHealth, Inc. (NASDAQ:EHTH) shares jumped 25.87% on Friday, following a stronger than expected earnings report from the company.

eHealth, Inc. (NASDAQ:EHTH) was among the biggest gainers in the Russell 2000 last Friday, thanks to the company’s upbeat earnings numbers. Shares advanced to a high of $11.49 before closing at $11.09. According to the report, first quarter revenue rose 20% to $73.8 million while earnings per share came in at $0.99 versus the consensus at $0.40 at a net income of $18 million compared to Q1 2015’s net loss of $2.1 million.

For the first quarter, adjusted EBITDA totaled $26.8 million, compared to an adjusted EBITDA of $5.8 million in Q1 2015. The company’s expected total 2016 revenues are in the range of $195 million to $203 million, according to its forward-guidance statements. Non-GAAP net income was $20.1 million or $1.10 per diluted share versus $0.26 per diluted share in the same quarter the previous year at a net income of $4.7 million.

“We are obviously very pleased with our first quarter financial results across all aspects of eHealth’s business,” said Gary Lauer, CEO of eHealth. “Our Medicare business is very strong, our individual and family plan business exceeded our expectations, and we once again generated cash.”

eHealth, Inc. (NASDAQ:EHTH) expects full-year earnings in the range of 38 cents to 68 cents per share. The company’s stock has been down 11% since the beginning of the year but could see further gains if it shows progress in achieving these profit and earnings forecasts.

eHealth, Inc. (NASDAQ:EHTH) is a health insurance exchange where individuals, families and small businesses can compare health insurance products, and purchase & enroll in coverage online. It also offers e-commerce solutions to health plan providers and resellers.  eHealth also provides online health insurance services in China, marketing the availability of health insurance plans through its websites such as eHealth.com, eHealthInsurance.com, eHealthMedicare.com, Medicare.com, and PlanPrescriber.com, as well as through a network of marketing partners.


DISCLAIMER: There is a substantial risk of loss with any speculative asset, especially small cap stocks. The opinions expressed are those of the author, and do not constitute recommendations to buy or sell a stock. Do your own research before committing capital.