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Monday, October 26, 2009
Amerigroup Earnings Off on Flu Costs
By Darryl R. Isherwood
FOXBusiness
Citing medical costs associated with the H1N1 virus, also known as swine flu, health insurer Amerigroup Corp. (AGP) predicted third quarter earnings below analysts’ expectations.
The company expects to earn 42 cents to 44 cents per share in the quarter, well off analysts’ expectations of 57 cents per share.
The health insurer has already cut its full-year earnings outlook twice, withdrawing its 2009 earnings forecast of $2.55 to $2.75 per share due to the high medical costs in the fourth quarter. Amerigroup has advised that it may not be able to meet the projection.
