Private insurance marketplace eHealth (EHTH) rose over 8 percent on Feb. 19 the day before the company issues their quarterly earnings report. While the company is expected to have performed well at the end of 2013 the real news will come in the form of guidance.
Specifically, investors will want to see how the crucial beginning of the year played out for eHealth in the wake of the disappointing healthcare.gov rollout at the beginning of the year.
As American consumers dealt with both an upcoming governmental health insurance mandate and a government-run health insurance marketplace that frequently crashed, they flocked in increasing frequency to services like eHealth. eHealth first won approval to sell Obamacare plans in July of 2013. The mandate was a boon to eHealth, with the glitches in healthcare.gov driving even more traffic their way.
Analysts have been likewise bullish on eHealth. Deutsche Bank raised their price target from $38 to $51 a share back in Jan. 21. And on Feb 13, RBC Capital raised their price target to $64 a share and issued an “outperform” rating on the company.
eHealth began its run in October as the initial frustrations over the rollout of Obamacare became apparent, and the company has soared since on the increased business. eHealth is now one of the top-performing small-cap Financial plays in the market in 2014 – partly because of external factors and partly due to its strong fundamentals.
eHealth notched a 4.27 percent gain on Feb 19 to hit $53.74 a share. Despite a correction a few weeks prior, the company’s shares have tripled in value since Feb. 2013.
eHealth will present fourth quarter 2013 and fiscal year 2013 earnings after the bell on Feb. 20. Analysts at Thomas Reuters expect the company to have earned $0.08 a share for the quarter, as opposed to $0.02 a share the same quarter the year prior.
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