Irvine-based CorVel Corp. said its profit and sales fell in the quarter and 12 months ended March 31. But Wall Street ignored the bad news, sending the company’s shares up 8% to in early trading Tuesday.
CorVel, which works with insurers and employers on workers’ compensation, reported a $2.5 million profit, down 22% from a year ago. Sales were off 5% to $72.8 million.
For 12 months ended March 31, CorVel posted profit of $10.2 million, down 36% from a year earlier. Sales were off 4% to $291 million.
CorVel said that sales and earnings were impacted by workers’ compensation reform in California and Colorado. All workers’ compensation claims were off by about 10% in 2004, the company said.
CorVel works with health plans, employers and insurers to keep a lid on workers’ comp costs. It offers claims management, bill review and a network of healthcare providers, as well as other services, down to transportation and translation work.
Investors likely were encouraged by CorVel’s productivity gains, which have helped keep gross profit steady. The company said it cut employment by 4% in the recently ended quarter from the prior quarter.
