Health Net Q1 Profit Rises - Quick Facts

(RTTNews) - Health Net Inc. (HNT) announced 2015 first quarter GAAP net income of $30.0 million, or $0.38 per share, up from $28.8 million or $0.36 per share, for the first quarter of 2014.

In the first quarter of 2015, Health Net incurred $47.3 million of pretax expenses primarily related to its previously announced transaction with a wholly owned subsidiary of Cognizant Technology Solutions Corporation. The transaction remains subject to receipt of required regulatory approvals.

Total revenues increased 28 percent in the first quarter of 2015 to $3.9 billion from $3.0 billion in the first quarter of 2014.

Analysts polled by Thomson Reuters expected the company to report earnings of $0.69 per share and revenues of $4.12 billion for the quarter. Analysts' estimates typically exclude special items.

Based on its results for the first quarter of 2015, the company increased its earnings per share guidance for the combined Western Region and Government Contracts segments by $0.10 to a range of $3.25 to $3.35.

The company maintained its guidance for GAAP earnings per share of at least $2.70 for the full year 2015 as it continues to incur transaction-related expenses for the Cognizant arrangement.

Analysts expect earnings of $3.26 per share for fiscal 2015.