Health Insurance Innovations Inc. (NASDAQ: HIIQ)’s 2Q2016 was not what many expected it to be. Revenue and earnings rose and the management now believes the future is even brighter. It turns out that product innovation and online sales expansion are helping HIIQ to beat competition and drive performance improvement.
What happened in 2Q2016?
Health Insurance Innovations Inc. (NASDAQ: HIIQ) was able to grow its revenue 96% YoY to $44.5 million in 2Q2016. The topline figure also outpaced the consensus estimate that called for revenue of $37.11 million.
The 96% topline growth translated to EPS of $0.27, which not only increased significantly from $0.08 posted in the year-ago quarter, but also exceeded the consensus estimate of $0.21.
Commenting on the results HIIQ’s CEO Patrick McNamee said that the solid performance was the work of exceptional execution by his team. He further said that strong demand for their insurance products provided support for growth in the just reported quarter.
Perhaps the comment on strong demand is backed by the fact that HIIQ saw its policies up 128% YoY to a record 258,400.
Health Insurance Innovations Inc (NASDAQ: HIIQ) also provided a highlight of its performance in the first six months of 2016 (1H2016). The company said its revenue in 1H came in at $87 million and adjusted EPS was $0.44. Unusual demand for individual and family finance plans supported the gains in 1H, CEO McNamee revealed.
2016 outlook – Health Insurance Innovations Inc. (NASDAQ: HIIQ)
Through continued product innovation, expansion of online sales and distributor development, HIIQ is hoping to keep its financial performance improving in the coming quarters and years.
As for 2016, the company has its sight set on revenue in the band of $155 to $165 million and EPS in the range of $0.55 to $0.56. The new metrics are an improvement over HIIQ’s earlier guidance that called for revenue of $138 to $144 million and EPS of $0.38 to $0.42.
Health Insurance Innovations Inc. (NASDAQ: HIIQ)’s sweetened guidance compares favorably with the consensus estimate that calls for revenue $144.9 million and EPS of $0.43.