Coventry Health Care (NYSE: CVH) reported Tuesday fourth-quarter profit rose 24 percent, citing less expenditures of its premiums on medical care, according to Associated Press.
Coventry said Tuesday its profit totaled $109.1 million, or 74 cents per share, compared to $88.2 million, or 60 cents per share, a year ago. Its revenue rose 15 percent, to $3.43 billion from $2.98 billion, which beat analysts polled by Thomson Reuters, who expected a profit of 56 cents per share.
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The company said it finished the year with 515,000 Medicare Advantage members, compared with about 380,000 a year ago. Medicare Part D membership grew 47,000, to almost 1.7 million.
In 2009, Coventry's profit fell 37 percent, to $242.3 million, or $1.64 per share, from $381.9 million, or $2.54 per share. Revenue grew 18 percent, to $13.9 billion from $11.73 billion. For the year, the company said 85.4 percent of its premium revenues went toward medical care, up from 84 percent in 2008.
For 2010, the company forecast a profit of $2.10 to $2.25 per share, while Wall Street analysts expect $2.23 per share on average.
Coventry said it expects to spend 82.7 percent to 83.5 percent of its premium revenues on medical care.
Company shares jumped 4.3 percent, or 98 cents, to $23.42 in afternoon trading.
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