eHealth, Inc. (EHTH) recently issued preliminary results of certain metrics for fourth quarter and full year 2014.
Fourth-Quarter 2014
eHealth anticipates fourth-quarter 2014 operating net loss per share in the range of 47–56 cents. Although the Zacks Consensus Estimate for the same is pegged at a loss of 12 cents per a share, it might be subject to revision, once analysts start incorporating the latest guidance by the company into their estimates.
Earnings before interests, tax, depreciation and amortization (EBITDA) for the fourth quarter is projected between $(16.3) million and $(13.8) million. Meanwhile, revenues for the quarter are estimated in the range of $43–$45 million. However, the Zacks Consensus Estimate stands at $53 million.
Fourth-quarter earnings and revenues have been affected by the deficit in Individual & Family Plan (IFP) sponsorship and advertising and other ancillary revenues. The downside can be largely attributed to a weak number of IFP applications and unfavorable timing of Medicare revenues, which were delayed to the first quarter of 2015. Additionally, substantially high Medicare marketing costs impacted earnings to a great extent.
eHealth estimates to have recorded combined applications for Medicare Advantage and Medicare Supplement products of 48,700, up 46% year over year. The submitted applications for all Medicare products including Prescription Drug Plans are estimated to be 64,800, up 22% year over year while that for IFP products are likely to decline 41% to 100,000.
Full-Year 2014
eHealth revised its guidance for 2014. Management now expects operating loss for 2014 in the range of 4–13 cents per share, comparing unfavorably with the earlier guidance of an operating net income per share of 30–43 cents. Although the Zacks Consensus Estimate for 2014 earnings is currently pegged at 4 cents per share, it might get revised.
Notably, the full-year EBITDA guidance for eHealth has been lowered to $1.5–$4 million from the previous guided range of $13.5–$18.5 million. Revenues for the year are now expected in the range of $178–$180 million, considerably lower than the earlier outlook of $185–$194 million. However, the Zacks Consensus Estimate of $188 million lies above the latest guided range.
The slashed guidance mainly reflects higher-than-expected Medicare marketing costs, a lower number of IFP applications and a decline in selling days under the Open Enrollment in the fourth quarter.
eHealth is scheduled to report fourth quarter and full year 2014 results between Feb 18 and Feb 23. Other stocks in the same sector that are scheduled to report their fourth quarter and full year 2014 numbers shortly are Aon plc (AON), Arthur J Gallagher & Co. (AJG) and Validus Holdings, Ltd. (VR).
eHealth currently carries a Zacks Rank #2 (Buy).
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