On Oct. 27, Coventry Health Care (NYSE:CVH) released third-quarter earnings for the period ended Sept. 30.
- Revenues missed analyst estimates by 3.3%, while EPS matched analyst estimates.
- Coventry had 2.5 million total health plan members, a slight increase year over year. Revenue was up 14% to slightly more than $1.9 billion.
- Net income growth of 10.9% lagged top-line growth due to falling margins.
- EPS increased 13.6% to $0.92 on increased net profit and a decreased share count.
- Free cash flow year to date grew 8.2%, to $703 million, on increased cash from operations.
(Figures in millions, except per-share data)
Income Statement Highlights
|
Avg. Est. |
Q3 2006 |
Q3 2005 |
Change | |
|---|---|---|---|---|
|
Sales |
$1,972 |
$1,909 |
$1,674 |
14% |
|
Net Profit |
-- |
$147.5 |
$133.1 |
10.9% |
|
EPS |
$0.92 |
$0.92 |
$0.81 |
13.6% |
|
Diluted Shares |
-- |
160.4 |
163.9 |
(2.1%) |
Get back to basics with a look at the income statement.
Margin Checkup
|
Q3 2006 |
Q3 2005 |
Change* | |
|---|---|---|---|
|
Gross Margin |
30.13% |
32.09% |
(1.96) |
|
Operating Margin |
11.75% |
12.54% |
(0.79) |
|
Net Margin |
7.73% |
7.95% |
(0.22) |
Margins are the earnings engine. See how they work.
Balance Sheet Highlights
|
Assets |
Q3 2006 |
Q3 2005 |
Change |
|---|---|---|---|
|
Cash + ST Invest. |
$1,407.6 |
$1,411.8 |
(0.3%) |
|
Receivables |
$362.7 |
$286.7 |
26.5% |
|
Inventory |
No Data |
No Data |
No Data |
|
Liabilities |
Q3 2006 |
Q3 2005 |
Change |
|---|---|---|---|
|
Accounts Payable |
$342.9 |
$401.1 |
(14.5%) |
|
Long-Term Debt |
$760.5 |
$770.5 |
(1.3%) |
Learn the ways of the balance sheet.
Cash Flow Highlights
|
YTD 2006 |
YTD 2005 |
Change | |
|---|---|---|---|
|
Cash From Ops. |
$750.5 |
$688.9 |
8.9% |
|
Capital Expenditures |
$47.7 |
$39.6 |
20.5% |
|
Free Cash Flow |
$702.8 |
$649.3 |
8.2% |
Find out why Fools always follow the money.
Related Companies:
- United Health Group (NYSE:UNH)
- Wellpoint (NYSE:WLP)
- Aetna (NYSE:AET)
- Humana (NYSE:HUM)
- Cigna (NYSE:CI)
Related Foolishness:
Coventry and UnitedHealth are Motley Fool Stock Advisor picks. Sign up today for a free report .
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