eHealth Shares Down 3% Despite Q4 Earnings Beat, '25 View Unveiled

eHealth, Inc.’s EHTH shares lost 3% since it reported fourth-quarter 2024 results on Feb. 26, 2025, before the opening bell. Despite an earnings beat, the quarterly results were dampened by rising operating costs, and a significant revenue decline in the Employer and Individual segment. Nevertheless, the downside was fully offset by strong Medicare segment growth, driven by a 42% surge in Medicare Advantage submissions and a 33% rise in approved members. Higher commissions and other revenues also supported the quarterly performance. See the Zacks Earnings Calendar to stay ahead of market-making news.EHTH reported fourth-quarter 2024 adjusted earnings of $2.32 per share, which outpaced the Zacks Consensus Estimate by 21.5%. The bottom line improved 44.1% year over year. Revenues amounted to $315.2 million, which advanced 27% year over year. The top line beat the consensus mark by 16.7%.eHealth, Inc. Price, Consensus and EPS Surprise eHealth, Inc. price-consensus-eps-surprise-chart | eHealth, Inc. QuoteEHTH’s Quarterly Operational UpdateCommissions of $275.7 million improved 26% year over year. Other revenues climbed 36% year over year to $39.5 million. Medicare submissions across the core agency and carrier-dedicated Amplify platforms of the company rose 38% year over year on the back of a 42% year-over-year surge in Medicare Advantage submissions. Total operating costs and expenses escalated 8% year over year to $202.5 million due to increased cost of revenues, marketing and advertising costs, and customer care and enrollment expenses. Interest expenses of $2.6 million witnessed a 7% year-over-year decline. EHTH’s net income of $97.5 million jumped 87% year over year in the fourth quarter. Adjusted EBITDA soared 74% year over year to $121.3 million.Segmental UpdateMedicare: The segment’s revenues climbed 31% year over year to $305.8 million. Gross profit totaled $159.9 million, up 56% year over year. The segment benefited on the back of an increase in approved members across Medicare Advantage and Medical Part D plans. Medicare plan approved members rose 33% year over year.Employer and Individual: The unit recorded revenues of $9.4 million, which dropped 33% year over year. Gross profit plunged 57% year over year to $4 million. The segment suffered a blow due to decreased individual and family and small business approved members.eHealth’s Financial Update (as of Dec. 31, 2024)eHealth exited the fourth quarter with cash and cash equivalents of $39.2 million, which declined nearly three-fold from the 2023-end level. Total assets of $1.2 billion increased 3.8% from the figure at 2023-end.  Long-term debt amounted to $68.5 million, which inched up 1% from the figure as of Dec. 31, 2023. Total stockholders’ equity of $588.4 million slid 2.9% from the 2023-end figure. Net cash used in operations totaled $27.7 million, which compares favorably with the cash outflows of $33.4 million in the prior-year quarter.EHTH’s Full-Year UpdateRevenues grew 18% year over year to $532.4 million in 2024. Commissions of $461.6 million advanced 14% year over year. EHTH reported a net income of $10.1 million against the prior year’s loss of $28.2 million. The Medicare segment’s revenues improved 23% year over year to $500.6 million in 2024. Meanwhile, revenues in the Employer and Individual unit dropped 32% year over year.eHealth’s 2025 View UnveiledeHealth expects revenues to be in the range of $510-$550 million, the mid-point of which indicates a 0.5% dip from the 2024 figure GAAP net income is projected to remain within $(10)-$15 million. Adjusted EBITDA is currently anticipated to be in the band of $35-$60 million. Operating cash flow is estimated to be in the range of $(25)-$10 million in 2025.eHealth’s 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.Performance of Other InsurersOf the insurance industry players that have reported fourth-quarter 2024 results so far, the bottom-line results of Willis Towers Watson Public Limited Company WTW, Aon plc AON and CNO Financial Group, Inc. CNO beat the respective Zacks Consensus Estimate.Willis Towers Watson delivered fourth-quarter 2024 adjusted earnings of $8.13 per share, which beat the Zacks Consensus Estimate by 1.5%. The bottom line increased 9% year over year. WTW posted adjusted consolidated revenues of $3 billion, up 4% year over year on a reported basis. Revenues increased 5% on an organic basis and a constant currency basis. The top line missed the Zacks Consensus Estimate by 0.3%. Adjusted operating income was $1 billion, which increased 10% year over year. The margin expanded 190 bps to 36.1%.Adjusted EBITDA was $1.1 billion, up 8.6% year over year. Adjusted EBITDA margin was 38.6%, which expanded 150 bps year over year. In the Health, Wealth & Career segment, total revenues of $1.8 billion rose 3% year over year (3% increase on a constant currency and an organic basis). The operating margin expanded 140 bps from the prior-year quarter to 41.9%, primarily from Transformation savings. Revenues in the Risk & Broking unit were $1.1 billion, which rose 6% year over year (7% increase in constant currency and on an organic basis). Aon’s fourth-quarter 2024 adjusted earnings of $4.42 per share surpassed the Zacks Consensus Estimate by 4.3%. The bottom line improved 14% year over year. Total revenues rose 23% year over year to $4.1 billion. However, the top line fell short of the consensus mark by 1.1%. Organic revenue growth was 6%. Adjusted operating income advanced 21% year over year to $1.38 billion. However, the adjusted operating margin of 33.3% deteriorated 50 bps year over year.In the Risk Capital segment, Commercial Risk Solutions’ organic revenues grew 6% year over year in the fourth quarter. Revenues in this solution line were $2.19 billion, which advanced 15% year over year. Organic revenues in Reinsurance Solutions improved 6% year over year. In the Human Capital unit, revenues of Health Solution climbed 40% year over year to $1.07 billion. Wealth Solutions’ organic revenues improved 8% year over year in the fourth quarter. CNO  Financial reported fourth-quarter adjusted earnings per share of $1.31, which beat the Zacks Consensus Estimate by 22.4%. The bottom line advanced 11% year over year. Total operating revenues slipped 2.7% year over year to $1.1 billion. Yet, the top line outpaced the consensus mark by 19.9% Total insurance policy income of $643.6 million improved 2.9% year over year. Net investment income tumbled 10.4% year over year to $416.6 million in the fourth quarter. General account assets of $399.5 million climbed 22.9% year over year. Policyholder and other special-purpose portfolios totaled $17.1 million, which declined more than eight-fold year over year. Fee revenues and other income were $78.7 million, which advanced 13.4% year over year.  Annuity collected premiums of $493.1 million improved 13% year over year. Annuity, Health and Life products accounted for 21.7%, 51.4% and 26.9%, respectively, of CNO’s insurance margin.7 Best Stocks for the Next 30 DaysJust released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.3% per year. So be sure to give these hand picked 7 your immediate attention. See them 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 CNO Financial Group, Inc. (CNO): Free Stock Analysis Report Aon plc (AON): Free Stock Analysis Report eHealth, Inc. (EHTH): Free Stock Analysis Report Willis Towers Watson Public Limited Company (WTW): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks