Health Insurance Innovations (NASDAQ:HIIQ), a provider of health insurance plans, pushed past Wall Street’s third-quarter revenue and profit estimates on Monday thanks to sales of insurance policies.
For the three months ended on September 30, the Tampa, Florida-based company posted net income of $4 million, which was down 33% from the $6 million recorded in the third quarter of last year. On an adjusted basis, its earnings per share, however, came in at $0.61 per share, which just beat analysts’ forecast of $0.59 per share.
Its revenue of $74 million also nudged past the consensus forecast of $73.4 million.
As of the close of September, the company’s insurance policies totaled 378,000, up 8.7% from the 347,900 policies reported in the year-ago quarter.
The company also benefited from a lower tax rate of 24%, compared to 38% in the year-ago period.
Due to a jump in the number of policies sold through third-party distributors, third-party commissions in the latest quarter were also up, climbing to $46.7 million, which was $10.1 million higher than they were in the third quarter of last year.
The company also raised its annual guidance of revenue for 2018 to a range of $294 million to $304 million. Its full-year earnings are set to be between $2.47 to $2.57 per share.
In other news, its total selling, general and administrative expenses climbed to $18.3 million in the third quarter compared to $15.5 million in the same period last year.
Health Insurance Innovations is a cloud-based technology platform and a distributor of health insurance. The company markets its insurance products via its network of third-party agents as well as its call center and web site.
Health Insurance Innovations closed up 5% to hit $45.00 on Monday.
Contact Ellen Kelleher at [email protected]