Health insurance plan distributor Health Insurance Innovations (HIIQ 20.95, 2.05 +10.85%) continues its October recovery following this morning’s news that the company now sees Q3 earnings and revenues ahead of market expectations.
HIIQ’s record preliminary unaudited results from continuing operations indicate that revenue for Q3 is expected to be in the range of $62.3-63.3 million, an increase of about 35% to 37% over the comparable prior year period. The company also sees adjusted EPS in the range of $0.44-0.46.
Further, HIIQ expects to report EBITDA in the range of $9.4-9.9 million and adjusted EBITDA of $12.3-12.8 million for the same period. The expected range in GAAP net income represents an increase of about 8-18%, and the expected range in EBITDA represents an increase of roughly 27-34%, versus last year’s period.
Management also announced that its Board of Directors has authorized the repurchase of up to $50 million of the company’s Class A common stock through October 2019.
HIIQ has been the subject of increased healthcare chatter lately in light of an Executive Order signed last week by President Donald J. Trump which highlighted that some employers could join together across State lines to offer coverage. It specifically directs the Secretary of Labor to consider expanding access to Association Health Plans (AHPs), which could potentially allow American employers to form groups across State lines. The order also directed the Departments of the Treasury, Labor, and Health and Human Services to consider changes to Health Reimbursement Arrangements (HRAs) so employers can make better use of them for their employees.
A potential beneficiary of President Trump’s Executive Order, HIIQ provides more affordable health plans by utilizing licensed firms to enroll customers in healthcare plans. The company provides access to coverage, not actual plans themselves as the insurance products listed on their site are underwritten by outside insurance carriers.
Full Q3 results are slated for a November 1, after-hours release.