Universal American Jumps 15% on Strong Q1 Results

Shares of Universal American

are seeing much strength during Tuesday's trading session after the company announced first quarter results which beat analysts' estimates and impressed investors. The company reported first-quarter EPS of $0.27 versus the estimated $0.10 per share, beating by +170%. Revenues came in at $531.7M versus the estimated $519.64M, beating by +2.3%. Richard A. Barasch, Chairman and CEO commented, “Our Medicare Advantage business continued to perform well. Our benefit ratios, after netting out positive prior period items, remain in line with our expectations and we are seeing the effect of reducing our cost structure. " "Building on our successful Healthy Collaboration® model, we are partnering with nine physician groups, including the Southeast Texas physicians who have been the backbone of our success in Medicare Advantage, to participate as ACOs in the Medicare Shared Savings Program." "Helping to create these ACOs demonstrates our ongoing commitment to working collaboratively with healthcare professionals and the government to improve the quality of care and manage healthcare costs for the benefit of the Medicare program and its beneficiaries." Currently, shares of Universal American are trading up about 15% at $10.51 per share. Universal American Corp. is a specialty health and life insurance holding company with a focus on providing a range of health insurance and managed care products and services to the senior population.