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eHealth Shares Up 25% as Quarterly Revenue Doubled and 2019 Guidance Raised

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The prognosis for online exchange operator eHealth Inc. looks positive as the company reported a 101% increase in Q2/19 revenues over the prior year period and raised full year 2019 revenue estimates by $50 million to $365385 million, compared with previous guidance of $315335 million for 2019.

Private online health insurance exchange operator eHealth Inc. (EHTH:NASDAQ) posted better than expected results in its second quarter earnings report for the period ending June 30, 2019. The markets are reacting favorably to the news with the stock up over 25% following the report.

For Q2/19, the company indicated that Total Revenue increased by 101% to $65.8 million, compared to $32.7 million in Q2/18. The firm further reported a lower GAAP net loss of $5.8 million in Q2/19 versus a net loss of $12.0 million for the same period last year, and Adjusted EBITDA improved to $0.8 million in Q2/19 compared to ($10.1) million in Q2/18.

Revenue from the company's Medicare segment was $52.3 million in Q2/19, representing a 105% increase compared to $25.5 million for Q2/18. During the same quarterly period the company noted that applications submitted for all Medicare products grew by 67% to 56,488, with approvals increasing by 78% to 52,559.

The company's CEO Scott Flanders commented, "We delivered another strong quarter once again exceeding our expectations and building momentum in our Medicare business that has continued to scale rapidly accompanied by EBITDA margin expansion...Approved Medicare members grew 78% year-over-year, driving a 105% increase in Medicare revenue year-over-year and a significant increase in Medicare segment profit."

The company updated its outlook for the full year ending December 31, 2019, noting, "Total revenue is expected to be in the range of $365 million to $385 million, compared with previous guidance of $315 million to $335 million. Revenue from the Medicare segment is expected in the range of $318 million to $333 million, compared with previous guidance of $281 million to $333 million. Revenue from the Individual, Family and Small Business segment is expected to be in the range of $47 million to $52 million, compared with previous guidance of $34 million to $38 million...assuming the impact of the non-cash charge related to an increase in fair value of the earnout liability in connection with eHealth's acquisition of GoMedigap remains at $0.82 per diluted share, GAAP net income per diluted share for 2019 is expected to be in the range of $0.62 to $0.82 per share, compared with previous guidance of $0.60 to $0.79 per share".

The company describes its business as a leading private online health insurance exchange where individuals, families and small businesses can compare health insurance products from brand-name insurers side by side and purchase and enroll in coverage online or by phone. Through its subsidiaries, eHealth is licensed to sell health insurance in all 50 states and the District of Columbia. Additionally, the firm offers educational resources, telephone support and online and pharmacy-based tools to help Medicare beneficiaries navigate Medicare health insurance options, choose the right plan and enroll in select plans online or over the phone through Medicare.com, eHealthMedicare.com GoMedigap and PlanPrescriber.com.

EHTH shares opened higher today at $101.99 (+16.51, +19.31%) from the prior day's close of $85.48. Shares reached an intraday 52-week high price in early trading on higher than average volume and have traded between $98.50 to $108.48 today. Presently, shares are trading at $108.44 (+$22.96, +26.86%).

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