Amerigroup Corp. (AGP:US), which provides health-care services to people on government-sponsored programs, expects a net loss in the third quarter ending Friday because of added medical costs and won't meet its 2005 profit forecast.
The loss will be 6 cents to 8 cents a share, the Virginia Beach, Virginia-based company said in a PR Newswire statement, compared with a profit forecast of 48 cents, the average estimate of 12 analysts surveyed by Thomson Financial.
Amerigroup, which provides health-case services to more than 1 million people in states that include Florida, Georgia, Illinois, Maryland, New York and New Jersey, said it won't meet its 2005 forecast of $1.73 to $1.78 a share. Analysts expected the company to earn $1.75. The loss relates to medical costs related to services performed in the first and second quarters of 2005, totaling about $23 million, or 26 cents a share, the company said.
Company spokesman Kent Jenkins Jr. didn't immediately return a voice mail.
Shares of Amerigroup dropped $1.26, or 3.7 percent, to $32.65 in extended trading. They earlier fell $1.09, or 3.1 percent, to $33.91 in new York Stock Exchange trading. The stock has dropped 10 percent this year.
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