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Oxford Health Puts Earnings At $1.24

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NU Online News Service, Oct. 22, 11:25 a.m. – Oxford Health Plans, Inc., Trumbull, Conn., says that it expects net income of approximately $0.26 per diluted share for the third quarter, down from $0.85 for the same period last year.

The company says its earnings will include a charge of $151.3 million, or $0.98 per diluted share after tax, from a securities class-action lawsuit brought in 1997 following a sharp fall in the price of the company’s stock.

Excluding the effect of the litigation charge, net income for the quarter would be $1.24 per diluted common share, the company estimates.

Expected third quarter earnings for 2002 also include the benefit of approximately $0.20 per share from changes in estimates of prior period reserves for medical claims and New York market stabilization pools for 1999 and 2001, the company says.

Oxford says it expects to report cash flow from operations of over $115 million for the quarter.