eHealth Inc. (EHTH) reported fourth-quarter 2014 net loss of 47 cents per share, narrower than the Zacks Consensus Estimate of loss of 57 cents. Results, however, compared unfavorably with a loss of 9 cents in the prior-year quarter.
Including extra-ordinary items, net loss of eHealth came in at $1.08 per share, wider than 11 cents in the year-ago quarter.
Operational Updates
eHealth’s total revenue grossed $45 million, in line with the Zacks Consensus Estimate but down 17% year over year.
Total operating costs and expenses rose 3.4% year over year to $58.7 million. The rise stemmed from an increase in customer care and enrollment expenses as well as technology and content costs.
Operating margin for the reported quarter was (31)%, against (5)% in the year-ago quarter.
Earnings before interest, tax, depreciation and amortization (EBITDA) was $(12.9) million, comparing unfavorably with $1.1 million in the year-ago quarter.
eHealth exited 2014 with total estimated memberships of nearly 1.1 million, which declined 10% from 1.2 million as of Dec 31, 2013. Total approved members decreased 0.8% year over year to 0.22 million.
Full-Year Highlights
eHealth reported 2014 operating net loss of 33 cents per share, which was narrower than the Zacks Consensus Estimate of a loss of 40 cents but wider than the year-ago loss of 2 cents.
Including extra-ordinary items, net loss of eHealth came in at 88 cents per share, compared with a net income of 9 cents per share in 2013.
eHealth’s total revenue in 2014 grossed $179.7 million, in line with the year-ago figure.
Financial Updates
eHealth exited 2014 with cash and cash equivalents of $51.4 million, down from $107.1 million at the 2013-end level. The decrease was attributable to stock repurchases, acquisition of property, equipment and intangible assets, and net-share settle equity awards.
The company’s total assets as of Dec 31, 2014 were approximately $106.7 million, declining from $166.4 million as of Dec 31, 2013.
As of Dec 31, 2014, total stockholders’ equity of eHealth was $73.5 million, declining from $133 million as of Dec 31, 2013.
Operating cash flow was $1.8 million in 2014 compared with $20.9 million a year ago.
Zacks Rank
Presently, eHealth carries a Zacks Rank #5 (Strong Sell).
Performance by Other Insurance Brokers
Aon plc’s (AON) fourth-quarter 2014 operating earnings of $1.89 per share beat the Zacks Consensus Estimate of $1.86, thereby marking the seventh straight quarter of positive earnings surprise.
Brown & Brown Inc.’s (BRO) adjusted earnings per share of 18 cents for fourth-quarter 2014 outperformed the Zacks Consensus Estimate by 38.5%.
Willis Group Holdings plc (WSH) reported fourth-quarter 2014 adjusted net income of 46 cents per share, surpassing the Zacks Consensus Estimate by a penny.
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