What Awaits Health Insurance Innovations (HIIQ) In Q3 Earnings?
Zacks Investment Research | Nov 07, 2019 09:40PM ET
Health Insurance Innovations, Inc. (NASDAQ:HIIQ) is set to report third-quarter 2019 earnings on Nov 12, after market close. The company delivered positive earnings surprise in three of the last four reported quarters with the average beat being 24.69%.
Let’s see how things have shaped up prior to the announcement.
Factors at Play
Health Insurance Innovations’ third-quarter results are expected to benefit from its solid portfolio of core products and individual and family plans as well as expansion of Medicare to the 65-plus market.
The company estimates third-quarter revenue contribution from Medicare channel in the range of 20% to 25% of consolidated revenues in the quarter.
Health Insurance Innovations also estimates third-party commissions as a percentage of revenues between 50% and 55%, indicating higher gross margins from expanded product portfolio.
The company estimates third-quarter revenues between $90 million and $94 million. The Zacks Consensus estimate for revenues is pegged at $90.3 million, indicating increase of 22.1% from the year-ago reported figure.
The strategy to focus on longer duration, higher lifetime value plans and e-commerce penetration and shift from lower cost and lower margin products are likely to have benefited the company. Better cross-sell experience is likely to have aided premiums at agile.
Increase in digital marketing investment at e-commerce channels is likely to have escalated selling, general and administrative expenses. The company projects $5 million to $6 million in expenses to ramp up Medicare offering ahead of the important fourth-quarter open enrollment period.
Health Insurance Innovations estimates third-quarter adjusted EBITDA between $5 million and $7 million.
Continued share buybacks are expected to have driven the bottom line.
The Zacks Consensus Estimate for earnings per share for the quarter to-be reported is pegged at 28 cents, implying a decrease of 54.1% from the year-ago reported figure. Health Insurance Innovations projects adjusted earnings per share between 30 cents and 35 cents.
Health Insurance Innovations, Inc. Price and EPS Surprise
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