Health Net Down 25% After Reporting Q1 Earnings

Health Net HNT is trading lower on the session following its Q1 earnings announcement. The company reported an EPS of $(0.32), which may not be comparable to $0.60 estimates and revenues of $2.83 billion vs $2.90 billion estimates. Jay Gellert, Health Net's chief executive officer stated: “Importantly, we continue to believe that each of our businesses is sound. Underlying commercial health care cost trends remain moderate, and we believe our new pharmacy agreement with CVS Caremark that was effective April 1, 2012 and new provider contracts will help keep health care cost trends predictable through the balance of this year. In addition, our Medicare business is improving, and our Medicaid and Government Contracts businesses remain stable.” Health Net is currently trading at $27.26, a loss of $9.06 or 24.94%.