Shares of CorVel Corp. rose 6% after the Irvine-based healthcare services company posted results for the quarter ended March 31 that beat Wall Street estimates.
CorVel earned $3.3 million in the quarter, up 27% from a year earlier.
Revenue fell about 9% to $66.6 million in the period. CorVel said a lower number of national workers’ compensation claims accounted for the revenue decline.
States including California have reformed their workers’ compensation insurance systems during the past few years.
CorVel works with health plans, employers and insurers to clamp down on workers’ compensation costs. It offers claims management, bill review, a network of healthcare providers as well as other services, down to transportation and translation work.
Analysts expected CorVel to post a profit of $2.3 million on revenue of $64.9 million in the quarter.
Earlier this week, CorVel named Daniel Starck, a former Apria Healthcare Corp. executive, as president and chief operating officer. Starck’s responsible for overseeing CorVel’s domestic operations in the newly created position.
