eHealth (EHTH) Reports In-Line Q2 EPS; Suspends Guidance

eHealth (NASDAQ: EHTH) reported Q2 EPS of $0.09, in-line with the analyst estimate of $0.09. Revenue for the quarter came in at $37.3 million versus the consensus estimate of $37.93 million.

Scott Flanders, chief executive officer of eHealth, stated, "We are pleased with strong growth in our Medicare business during the quarter, and our ability to run our individual and family health insurance business for profitability despite the turbulent market environment. At the same time, our installed base in our individual and family business continues to decline as we pull back on our marketing spend in that area. As the new chief executive officer, I recently initiated a strategic review process to examine our existing businesses -- Medicare, Individual and Family and Ancillary Products -- to determine a strategic course to maximize the revenue and profit potential in each of these businesses and to further build shareholder value. The review also involves an examination of adjacent business areas that could potentially help us further diversify our revenue away from the heavily regulated individual and family health insurance market and accelerate the company's growth by leveraging existing assets and core competencies. I look forward to sharing with you the strategic outlook for eHealth and its potential impact on near-term and longer-term financial performance after the review has been completed."

2016 Guidance

As a result of the recent changes in leadership and the comprehensive review of the business that we are undertaking, eHealth is suspending its 2016 financial guidance. The executive team is reviewing near-term operating trends in the context of the overall process of examining areas of potential emphasis and investment for the business. eHealth is carefully examining the financial impact of the strategic and operational decisions it is considering and we expect that we will be in a position to provide the investment community with a more tangible strategic and financial outlook when our strategic review of the business is complete later this year.

For earnings history and earnings-related data on eHealth (EHTH) click here.

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