It's a great day to own shares of Medibank Private Ltd (ASX: MPL).
On a day where the S&P/ASX 200 (ASX: XJO) is down another 1.4%, Medibank's shares have soared 10.5%. They rose as much as 18.9% earlier in the session, maxing out at $2.39.
Medibank Private absolutely smashed its forecast earnings, reporting a net profit of $285.3 million. Previously, it guided for just $258.2 million.
Although revenue growth wasn't all that strong, the health insurer made up for it with a solid improvement in margins, including a 0.5% improvement in its management expense ratio.
The solid result allowed the company to deliver its promised inaugural dividend of 5.3 cents per share, ahead of the forecast 4.9 cents and enough to keep income investors more than happy.
It's not a risk-free investment, but it's certainly an encouraging result for investors.
