Private Exchange eHealth (EHTH) Pops as Frustration Over Obamacare Mounts

Jacob Harper |

Despite reporting earnings that barely beat expectations, the private health care exchange eHealth Inc. (EHTH) jumped over 15 percent in early trading on Oct 25,  buoyed by ongoing consumer exasperation with the rollout of the Affordable Care Act, popularly known as Obamacare.

While an undertaking as gargantuan as Obamacare was bound to encounter snafus, investors counted on the impatience of American consumers, and expected many to instead find refuge in private exchanges like eHelath. Coupled with the fact that eHealth did not suffer under competition from the federal government and actually reported earnings that slightly edged expectations, investors saw an opportunity and sent the company’s shares soaring.

For their third quarter 2013 earnings, eHealth reported a net income of $1.6 million, or $0.08 per share, compared to $1.8 million, or $0.09 per share from the previous year. Revenue was $42 million, compared to $37.6 million from the same period the year prior. Analysts were expecting a net income of $0.07 cents a share on revenues of $40.9 million.

Until the federal government routs out the bugs and improves public perception of the online exchanges, eHealth’s future looks rosy. Analysts currently expect eHealth’s EPS to skyrocket next quarter to $0.27 per share and revenues to jump over 20 percent.

On the earnings edge and sunny outlook, eHealth popped then corrected slightly, settling in at $43.20 a share in midday trading, representing a gain of 11.42 percent on the day.

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to:


Symbol Name Price Change % Volume
BEVVF Bee Vectoring 0.23 0.01 5.86 5,050
EHTH eHealth Inc. 10.98 -0.17 -1.52 59,650


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