eHealth, Inc.’s EHTH shares lost 3% since it reported fourth-quarter 2024 results on Feb. 26, 2025, before the opening bell. Despite an earnings beat, the quarterly results were dampened by rising operating costs, and a significant revenue decline in the Employer and Individual segment. Nevertheless, the downside was fully offset by strong Medicare segment growth, driven by a 42% surge in Medicare Advantage submissions and a 33% rise in approved members. Higher commissions and other revenues also supported the quarterly performance. 

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EHTH reported fourth-quarter 2024 adjusted earnings of $2.32 per share, which outpaced the Zacks Consensus Estimate by 21.5%. The bottom line improved 44.1% year over year. 

Revenues amounted to $315.2 million, which advanced 27% year over year. The top line beat the consensus mark by 16.7%.

EHTH’s Quarterly Operational Update

Commissions of $275.7 million improved 26% year over year. Other revenues climbed 36% year over year to $39.5 million. Medicare submissions across the core agency and carrier-dedicated Amplify platforms of the company rose 38% year over year on the back of a 42% year-over-year surge in Medicare Advantage submissions. 

Total operating costs and expenses escalated 8% year over year to $202.5 million due to increased cost of revenues, marketing and advertising costs, and customer care and enrollment expenses. Interest expenses of $2.6 million witnessed a 7% year-over-year decline. 

EHTH’s net income of $97.5 million jumped 87% year over year in the fourth quarter. Adjusted EBITDA soared 74% year over year to $121.3 million.

Segmental Update

Medicare: The segment’s revenues climbed 31% year over year to $305.8 million. Gross profit totaled $159.9 million, up 56% year over year. The segment benefited on the back of an increase in approved members across Medicare Advantage and Medical Part D plans. Medicare plan approved members rose 33% year over year.

Employer and Individual: The unit recorded revenues of $9.4 million, which dropped 33% year over year. Gross profit plunged 57% year over year to $4 million. The segment suffered a blow due to decreased individual and family and small business approved members.

eHealth’s Financial Update (as of Dec. 31, 2024)

eHealth exited the fourth quarter with cash and cash equivalents of $39.2 million, which declined nearly three-fold from the 2023-end level. Total assets of $1.2 billion increased 3.8% from the figure at 2023-end.  

Long-term debt amounted to $68.5 million, which inched up 1% from the figure as of Dec. 31, 2023. 

Total stockholders’ equity of $588.4 million slid 2.9% from the 2023-end figure. 

Net cash used in operations totaled $27.7 million, which compares favorably with the cash outflows of $33.4 million in the prior-year quarter.

EHTH’s Full-Year Update

Revenues grew 18% year over year to $532.4 million in 2024. Commissions of $461.6 million advanced 14% year over year. 

EHTH reported a net income of $10.1 million against the prior year’s loss of $28.2 million. The Medicare segment’s revenues improved 23% year over year to $500.6 million in 2024. Meanwhile, revenues in the Employer and Individual unit dropped 32% year over year.

eHealth’s 2025 View Unveiled

eHealth expects revenues to be in the range of $510-$550 million, the mid-point of which indicates a 0.5% dip from the 2024 figure 

GAAP net income is projected to remain within $(10)-$15 million. 

Adjusted EBITDA is currently anticipated to be in the band of $35-$60 million. Operating cash flow is estimated to be in the range of $(25)-$10 million in 2025.

eHealth’s Zacks Rank

eHealth currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performance of Other Insurers

Of the insurance industry players that have reported fourth-quarter 2024 results so far, the bottom-line results of Willis Towers Watson Public Limited Company WTW, Aon plc AON and CNO Financial Group, Inc. CNO beat the respective Zacks Consensus Estimate.

Willis Towers Watson delivered fourth-quarter 2024 adjusted earnings of $8.13 per share, which beat the Zacks Consensus Estimate by 1.5%. The bottom line increased 9% year over year. WTW posted adjusted consolidated revenues of $3 billion, up 4% year over year on a reported basis. Revenues increased 5% on an organic basis and a constant currency basis. The top line missed the Zacks Consensus Estimate by 0.3%. Adjusted operating income was $1 billion, which increased 10% year over year. The margin expanded 190 bps to 36.1%.

Adjusted EBITDA was $1.1 billion, up 8.6% year over year. Adjusted EBITDA margin was 38.6%, which expanded 150 bps year over year. In the Health, Wealth & Career segment, total revenues of $1.8 billion rose 3% year over year (3% increase on a constant currency and an organic basis). The operating margin expanded 140 bps from the prior-year quarter to 41.9%, primarily from Transformation savings. Revenues in the Risk & Broking unit were $1.1 billion, which rose 6% year over year (7% increase in constant currency and on an organic basis). 

Aon’s fourth-quarter 2024 adjusted earnings of $4.42 per share surpassed the Zacks Consensus Estimate by 4.3%. The bottom line improved 14% year over year. Total revenues rose 23% year over year to $4.1 billion. However, the top line fell short of the consensus mark by 1.1%. Organic revenue growth was 6%. Adjusted operating income advanced 21% year over year to $1.38 billion. However, the adjusted operating margin of 33.3% deteriorated 50 bps year over year.

In the Risk Capital segment, Commercial Risk Solutions’ organic revenues grew 6% year over year in the fourth quarter. Revenues in this solution line were $2.19 billion, which advanced 15% year over year. Organic revenues in Reinsurance Solutions improved 6% year over year. In the Human Capital unit, revenues of Health Solution climbed 40% year over year to $1.07 billion. Wealth Solutions’ organic revenues improved 8% year over year in the fourth quarter. 

CNO  Financial reported fourth-quarter adjusted earnings per share of $1.31, which beat the Zacks Consensus Estimate by 22.4%. The bottom line advanced 11% year over year. Total operating revenues slipped 2.7% year over year to $1.1 billion. Yet, the top line outpaced the consensus mark by 19.9% Total insurance policy income of $643.6 million improved 2.9% year over year. Net investment income tumbled 10.4% year over year to $416.6 million in the fourth quarter. 

General account assets of $399.5 million climbed 22.9% year over year. Policyholder and other special-purpose portfolios totaled $17.1 million, which declined more than eight-fold year over year. Fee revenues and other income were $78.7 million, which advanced 13.4% year over year.  Annuity collected premiums of $493.1 million improved 13% year over year. Annuity, Health and Life products accounted for 21.7%, 51.4% and 26.9%, respectively, of CNO’s insurance margin.

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