PacifiCare Says Profit Will Beat Estimates

PacifiCare Health Systems Inc., the biggest operator of Medicare health plans, said first-quarter profit rose more than expected.

First-quarter profit was at least $1.90 a share, more than twice analysts’ estimates. Full-year profit will be as high as $6.10 a share, compared with $4.35 that had been forecast, PacifiCare said. The company will report its earnings April 30.

PacifiCare’s Medicare business has become more profitable because of cost-cutting steps it took last year.

Shares of the Cypress, Calif.-based company climbed as much as 21% to $27.75 in after-hours trading, after closing down $2.15 to $23.01 on Nasdaq.