Health Net Inc. has resumed its share buyback program, purchasing 2.8 million shares and spending more than $123 million during its fourth quarter, the Woodland Hills company announced Wednesday.

The company resumed buying back its shares in October after suspending its repurchase program in September of 2004. The plan calls for the health insurer to buy back $450 million in shares.

Health Net expects to leave 114 million shares outstanding, prompting the company to revise its 2007 outlook to $3.65 a share, up from $3.60 a share. It also upped its revenue projections to between $14 and $15 billion, during its annual meeting with analysts. Analysts predict earnings of $3.54 on revenue of $13.84 billion, according to Thomson First Call.

Health Net also announced it expects its commercial enrollment to rise 1 percent to 2 percent in 2007, while its Medicare HMO membership will rise 10 percent.

Shares in Health Net were up $16.8 to $47.51 in early trading Wednesday.