eHealth Incurs Q3 Loss on Lower Commissions, Shares Down 6.1%

eHealth, Inc.’s EHTH shares lost 6.1% since it reported third-quarter results on Nov. 6, 2024. The quarterly results were hurt by lower commissions and other revenues. However, lower expenses and growth in Medicare application volume across agency and carrier-dedicated platforms partially offset the negatives.EHTH incurred a third-quarter 2024 adjusted loss of $1.86 per share, wider than the Zacks Consensus Estimate of a loss of $1.13 per share and the prior-year quarter’s loss of $1.54 per share. Revenues dipped 9.7% year over year to $58.4 million. The top line outpaced the consensus mark by a whisker.Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.eHealth, Inc. Price, Consensus and EPS Surprise eHealth, Inc. price-consensus-eps-surprise-chart | eHealth, Inc. QuoteQuarterly Operational UpdateCommissions declined 16% year over year to $48.2 million, lower than the Zacks Consensus Estimate of $48.9 million. Other revenues of $10.2 million climbed 36% year over year but missed the consensus mark of $10.7 million. Medicare submissions grew 22% year over year, mainly due to growth in Medicare Advantage submissions of 26% year over year.Total operating costs and expenses were $101.6 million, down 2% year over year due to lower general and administrative and technology and content expenses. Interest expenses increased 1% year over year to $2.9 million.EHTH incurred a net loss of $42.5 million, wider than the prior-year quarter’s loss of $37 million. Adjusted EBITDA was a negative figure of $34.8 million.Segmental UpdateMedicare: The unit recorded revenues of $53.2 million, which declined 4% year over year. Segmental loss totaled $17.9 million against the prior-year figure of $15.3 million. The segment benefited on the back of higher commissions from approved members. Medicare Advantage plan approved members grew 6% from the year-ago period.Employer and Individual: Revenues from the segment dipped 44% year over year to $5.2 million. Segmental loss of $0.8 million plunged 117% year over year. The segment was hurt by decreased individual and family, small business and ancillary approved members.Financial Update (as of Sept. 30, 2024)eHealth exited the third quarter with cash and cash equivalents of $64 million, which declined 44.7% from 2023-end. Total assets of $1 billion fell 10% from the figure at 2023-end. Long-term debt for the company increased 2.1% to $69.2 million at the third-quarter end from the 2023 level. There was no short-term debt at the third-quarter end. Total stockholders’ equity of $499.3 million decreased 17.6% from the 2023-end figure. Net cash used in operations totaled $29.3 million compared with $24.7 million in the prior-year quarter. 2024 View ReiteratedeHealth expects revenues in the range of $470-$495 million, higher than the previous view of $450-$475 million. The midpoint of the revised guidance indicates an improvement of 6.5% from the 2023 figure. GAAP net loss is projected to be in the range of $36.5-$22 million compared with the earlier view of $40-$20 million. Adjusted EBITDA is currently anticipated to be in the band of $7.5-$25 million. Operating cash flow is anticipated to be in the range of $(10)-$0 million in 2024.Zacks RankeHealth currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Other ReleasesMarsh & McLennan Companies, Inc. MMC reported third-quarter 2024 adjusted earnings per share of $1.63, which beat the Zacks Consensus Estimate by 1.2%. The bottom line advanced 3.8% year over year. Consolidated revenues rose 6% year over year to $5.7 billion. The figure also improved 5% on an underlying basis. The top line, however, fell short of the consensus mark by 0.2%. Marsh & McLennan’s adjusted operating income was $1.19 billion in the third quarter, which grew 12% year over year but missed our estimate of $1.21 billion. Arthur J. Gallagher & Co. AJG reported third-quarter 2024 adjusted net earnings of $2.26 per share, which matched the Zacks Consensus Estimate. The bottom line increased 13% on a year-over-year basis. Total adjusted revenues of $2.7 billion missed the Zacks Consensus Estimate by 0.1%. However, the top line improved 11.1% year over year.EBITDAC grew 14.3% from the prior-year quarter to $808.8 million.Aon plc AON reported third-quarter 2024 adjusted earnings of $2.72 per share, which beat the Zacks Consensus Estimate by 11%. The bottom line advanced 17% year over year. Total revenues of $3.72 billion improved 26% year over year. The top line beat the consensus mark by 0.5%. It consisted of organic revenue growth of 7% and 19% growth from acquisitions.Revenues are expected to register mid-single-digit or higher organic growth for 2024 and beyond. The company expects the adjusted operating margin to expand in 2024.Only $1 to See All Zacks' Buys and SellsWe're not kidding.Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent.Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators,and more, that closed 228 positions with double- and triple-digit gains in 2023 alone.See Stocks Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Marsh & McLennan Companies, Inc. (MMC): Free Stock Analysis Report Aon plc (AON): Free Stock Analysis Report Arthur J. Gallagher & Co. (AJG): Free Stock Analysis Report eHealth, Inc. (EHTH): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks