Jefferies Comments On CVH 1Q Results

Jefferies is commenting on Coventry Health Care's CVH 1Q results. “1Q EPS beats by 25%+,” Jefferies writes. “Adjusted EPS of $0.66 (excludes $0.08 impact of MA-FFS discontinuation) was 27% and 31% higher than consensus and JEF estimates, respectively. “Upside driven by MLR and SG&A that were 30-60bps better than our expectations. Sources of upside. MLR of 83.2% was 30-90bps below JEF (83.6%) and consensus (84.1%). SG&A of 16.4% was favorable to JEF (17.0%) and Street (16.6%) projections by 20-60bps. Revenue was lower than our forecast, but in-line with consensus.” Coventry Health Care closed Friday at $32.27.