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What: Shares of health-care service provider Amerigroup
So what: The bad news for Amerigroup shareholders is that earnings per share in the first quarter fell 53% from last year. The good news is that the drop was fully expected and the $0.64 per-share profit was a good deal better than the $0.56 that Wall Street analysts had estimated. Revenue grew 15% year over year to $1.77 billion, which was slightly short of the $1.81 billion that analysts were looking for.
Now what: There wasn't much of an update on the company's full-year outlook -- revenue is still expected to climb 40%, and the net margin is still seen in the 1.5% to 2.5% range. However, the company did tighten the expected health benefit ratio for the year, bringing it down slightly to a midpoint of 86.2%.
In all, it looks like a solid quarter for Amerigroup, and the company's expansion efforts in Texas and Louisiana should help set it up to deliver on the growth promises for the full year.
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Fool contributor Matt Koppenheffer has no financial interest in any of the companies mentioned. You can check out what Matt is keeping an eye on by visiting his CAPS portfolio, or you can follow Matt on Twitter, @KoppTheFool, or on Facebook. The Fool’s disclosure policy prefers dividends over a sharp stick in the eye.