Lehman Keeps Equal-Weight on Oxford Health

Analyst Joshua Raskin says lower costs helped the health-care insurer beat his estimates

Lehman reiterates equal-weight on Oxford Health (OHP ).

Analyst Joshua Raskin says the 86 cents second-quarter earnings per share on a run-rate basis beat his 80 cents estimate. The $1.36 billion total revenue beat his $1.35 billion estimate, supported by a lower medical loss ratio and relatively in-line selling, general, and administrative expenses.

Raskin notes, however, that Oxford continues to struggle on the membership front, losing some 24,300 commercial lives in the second quarter, which included roughly 5,000 lives from the former MedSpan plan alone. He thinks Oxford Health has fewer than 20,000 of its original MedSpan membership. Also, Oxford did not provide guidance, but will during a conference call.

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