First Health Group Corp. said Monday that its third-quarter profit jumped 28 percent, as the company benefited from a new contract to administer health benefits for a large postal union.
The Downers Grove-based company, which helps large employers manage and process medical claims, said net income rose to $33.7 million, or 32 cents a share, from $26.4 million, or 25 cents a share, a year ago.
The results were in line with Wall Street estimates, and shares of First Health rose 38 cents, to $26.10, on the Nasdaq market.
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“We are very, very excited about the momentum we see,” First Health Chief Executive Edward Wristen said during a conference call with analysts.
First Health reported record revenue of $204.9 million, an increase of 35 percent from the year-earlier period.
The company received a major boost in third-quarter revenue from the addition, effective July 1, of a contract to provide health-benefits services to more than 400,000 members of the National Postal Mail Handlers Union.
First Health this year beat out Chicago-based CNA Financial Corp. for the contract, the largest piece of business in First Health’s history.
Meanwhile, First Health also reported strong sales of preferred provider organizations, a health plan that allows consumers greater choices of medical-care providers. PPO revenue grew 22 percent, to $111.1 million, in the quarter ended Sept. 30.