69% Rise in FHP Quarterly Profit Reflects TakeCare Acquisition

FHP International Corp., a Fountain Valley diversified health care company, reported a 69% increase in profit for the third fiscal quarter, to $28.4 million, or 49 cents a share, from $16.8 million, or 50 cents a share, for the year-earlier period. The quarter’s results include those of TakeCare Inc., which FHP acquired last June. Revenue for the quarter ended March 31 was up 61% to $1 billion from $622.5 million.

For the nine-month period, profit rose 84% to $70.5 million, or $1.21 a share, from $38.3 million, or $1.14 a share, for the like period a year ago. Revenue increased 61% to $2.9 billion from $1.8 billion.

Although earnings rose, FHP’s stock price fell sharply in heavy Nasdaq market trading Thursday as investors reacted to the company’s prediction that competition in the health care industry will remain fierce. FHP shares fell to a 52-week low of $19.50 before recovering slightly to close at $19.75, down $3.125 for the day. A total of 5.24 million shares of FHP common stock changed hands.