First Health gives stockholders a shot of split fever

After the bell today, First Health Group Corp. (Nasdaq: FHCC) announced that the board of directors approved a 2-for-1 split on the company's common stock. The dividend will be payable on June 25, 2001 for all shareholders on record as of June 4, 2001. The company currently has 48.8 million shares outstanding, 27.8 million shares in the float, and 155 million shares authorized for issuance to the public.

First Health announced favorable earnings for their first quarter on April 30, 2001. Earnings rose to $24.4 million, or 48 cents a share, in the first quarter from $19.6 million, or 40 cents a share, in the comparable period a year ago. The latest quarter's results beat a consensus estimate of 46 cents as polled by research firm Thomson Financial/First Call. Revenues for the three months ended March 31 increased 12 percent to $137.0 million from $122.5 million, the company said. FHCC's last split occurred in the second quarter of 1998.

Based on the strong results in the first quarter, First Health said it currently expects per-share earnings growth for the full year in the range of 19 to 20 percent, up from its previous estimate of 18 percent. Analysts expect full year earnings of $1.95 a share, according to First Call.

SplitTrader has been anticipating a split announcement from FHCC and had the stock posted on our candidates list. Please check back for updates as we continue to monitor the split run for potential trading opportunities.

FHCC's stock is down 1.92 to 51.85 at the markets close on Tuesday. Volume was heavy at 1.07 million; the three-month average is 412.2 thousand. The 52-week range for FHCC is 55.15 to 21.63.

About the Company:

First Health Group Corp. is a full-service national health benefits company. The Company specializes in serving large, national employers and payers with a single source for their group health programs, providing comprehensive, cost-effective and innovative solutions for all the health benefits needs of their employees nationwide. Through its First Health Services service line, the Company provides services to various state Medicaid and entitlement programs for claims administration, pharmacy benefit management programs and medical management and quality review services. (Company Press Release)

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