On Feb. 9, Coventry Health Care (NYSE:CVH) released fourth-quarter earnings for the period ended Dec. 31.

  • Revenues were up by 12.9% due to good performance by the company's health plans and expansion of its Medicare business.
  • EPS grew by 26% to $0.97 per share, and company expects Q1 2007 EPS to be in the range of $0.75 to $0.77 per share.
  • For Q1 2007, the company expects revenues to be in the range of $2.10 billion to $2.30 billion, and FY 2007 revenues to be in the range of $8.76 billion to $9.03 billion. This implies solid double-digit top line growth.
  • Coventry Health is highly regarded in our Motley Fool CAPS stock ratings service, having earned the top five-star rating.

(Figures in millions, except per-share data)

Income Statement Highlights

Q4 2006

Q4 2005

Change

Sales

$1,941.0

$1,718.9

12.9%

Net Profit

$156.1

$126.4

23.5%

EPS

$0.97

$0.77

26.0%

Diluted Shares

160.5

164.6

(2.5%)



Get back to basics with a look at the income statement.

Margin Checkup

Q4 2006

Q4 2005

Change*

Gross Margin

31.6%

32.2%

(0.6)

Operating Margin

11.7%

11.4%

0.3

Net Margin

8.0%

7.4%

0.7

*Expressed in percentage points.

Margins are the earnings engine. See how they work.

Balance Sheet Highlights

Assets

Q4 2006

Q4 2005

Change

Cash + ST Invest.

$1,663.2

$937.3

77.5%

Accounts Rec.

$209.2

$228.0

(8.3%)

Inventory

No Data

No Data

No Data



Liabilities

Q4 2006

Q4 2005

Change

Accounts Payable

$460.5

$442.8

4.0%

Long-Term Debt

$750.5

$760.5

(1.3%)



Learn the ways of the balance sheet.

Cash Flow Highlights

Q4 2006

Q4 2005

Change

Cash From Ops.

$315.9

$115.6

173.4%

Capital Expenditures

$24.9

$31.8

(21.7%)

Free Cash Flow

$291.0

$83.8

247.5%



Find out why Fools always follow the money.

Related Companies:

  • WellPoint (NYSE:WLP)
  • UnitedHealth Group (NYSE:UNH)
  • Aetna (NYSE:AET)
  • CIGNA (NYSE:CI)
  • Molina Healthcare (NYSE:MOH)

Related Foolishness:

Coventry Health and UnitedHealth Group are Stock Advisor recommendations. UnitedHealth Group is also an Inside Value pick.

Fool by Numbers is designed to give you the raw earnings information in a timely fashion, putting all the numbers you need in one easy-to-read place. But at The Motley Fool, we believe numbers tell only part of the story, so check Fool.com for more of our in-depth discussion of what the numbers mean. This data has been provided by Netscribes. To provide feedback on this article, please click on the "feedback" button below.