Coventry Health Care, Inc. (NYSE: CVH) reported higher revenues but lower profits for the fourth quarter 2011 even with the positive impact of Medicare Advantage Private Fee-for-Service (MA-PFFS) product which added $0.02 to earnings per share.
The Fortune 500 health insurer based in Bethesda brought in revenues of $3.13 billion for the fourth quarter versus $3.03 billion in the fourth quarter 2010. Coventry added to revenues through a Medicaid contract with the Commonwealth of Kentucky adding 221,000 members and closed on the acquisition of Children’s Mercy’s Family Health Partners on January 1, 2012. Revenues surpassed the average estimate from 16 analysts of $3.09 billion. For the full year 2011 revenues were $12.19 billion.
The company reported net earnings of $85.7 million or $0.60 cents per diluted share in the fourth quarter, down from $150.3 million or $1.01 per diluted share in the same period of 2010. The actual earnings missed the average estimate from 20 analysts by 3 cents.
Coventry issued full year 2012 guidance for earnings per share in the range of $3.10 to $3.30. The company expects consolidated revenue of