Amerigroup Corp. (AGP:US), a provider of managed health care for low-income Americans, reduced its profit forecast for 2008 after the U.S. Federal Reserve cut its benchmark interest rate.
Full-year earnings probably will be $2.46 to $2.61 a share, Amerigroup said in a PR Newswire statement today. The Virginia Beach, Virginia-based company previously forecast earnings of $2.58 to $2.73 a share.
The Federal Reserve reduced its main lending rate by three quarters of a percentage point to 2.25 percent yesterday in an attempt to prop up the economy. Amerigroup, which serves more than 1.7 million people in 10 states and Washington, D.C., said it expects the lower rate to affect the company for the remainder of 2008.
The health-care provider is scheduled to release first- quarter earnings on April 23.
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