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eHealth (EHTH) to Report Q1 Earnings: What's in the Cards?

eHealth, Inc. EHTH is slated to report first-quarter 2020 results on Apr 23, after the closing bell.

Q1 Estimates

The Zacks Consensus Estimate for first-quarter revenues is pegged at $82 million, suggesting an improvement of 18.8% from the prior-year quarter.

The same for earnings per share is pegged at 20 cents, which indicates a decline of 39.4% from the year-ago reported figure.

Key Factors for Q1 Earnings

eHealth’s first-quarter performance is likely to have benefited from strong revenues at its Medicare segment. The segment is likely to have gained from the company’s strategic efforts to increase enrollment in its Medicare Advantage plan and retain existing ones. Thereby, the Zacks Consensus Estimate for the number of approved members at the Medicare segment is pegged at 83,522 in the to-be-reported quarter, suggesting growth of 44.3% from the prior-year quarter.

Notably, the Zacks Consensus Estimate for first-quarter 2020 Medicare revenues is pegged at $79 million, indicating an improvement of 43.9% from the year-ago quarter. The consensus estimates for first-quarter profit at this segment stands at $16.3 million, suggesting growth of 50.6% from the prior-year quarter.

Notably, eHealth has been undertaking several investments in a bid to boost its presence in the Medicare market. The increased efforts of bolstering Medicare business has shifted the company’s focus from its Individual, Family and Small Business segment, which is likely to have negatively impacted the number of approved members in the segment. Consequently, the Zacks Consensus Estimate for the number of approved members in Total Individual and Family plan is pegged at 10,526 in the quarter to be reported, which suggests a decline of 9.2% from the prior-year quarter.

eHealth’s first-quarter results are likely to reflect softer revenues in Individual, Family and Small Business segment. The Zacks Consensus Estimate for first-quarter 2020 revenues at this segment is pegged at $2.9 million, which indicates a decline of 79.1% from the year-ago quarter. Notably, the consensus estimates for this segment’s profit is pegged at $4.7 million, suggesting a decline of 22.8% from the prior-year quarter.

Moreover, high costs incurred for enhancing the company’s existing set of capabilities in a bid to boost Medicare business is likely to weigh on the first-quarter performance.

Earnings Surprise History

The company has a trailing four-quarter positive earnings surprise of 182.77%, on average.

eHealth, Inc. Price and EPS Surprise

eHealth, Inc. price-eps-surprise | eHealth, Inc. Quote

What Our Quantitative Model Predicts

Our proven model does not conclusively predict an earnings beat for eHealth this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.

Earnings ESP: eHealth has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: eHealth carries a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Stocks to Consider

Some stocks worth considering from the finance sector with a right combination to surpass estimates in the upcoming quarterly releases are as follows:

Virtu Financial, Inc. VIRT has an Earnings ESP of +41.57% and a Zacks Rank #1. The company is slated to announce first-quarter 2020 earnings on May 7.

Aon plc AON has an Earnings ESP of +0.20% and a Zacks Rank #3. The company is slated to announce first-quarter 2020 earnings on May 1.

Marsh & McLennan Companies, Inc. MMC has an Earnings ESP of +0.36% and a Zacks Rank #3. The company is scheduled to release first-quarter 2020 earnings on Apr 30.

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