Health Net Inc. reported 29 percent higher second quarter net income, boosted by growth in its core Western region, prompting the insurer to raise its annual outlook.

The Woodland Hills health insurance company on Thursday reported net income of $58.3 million (63 cents a share) compared with $45 million (45 cents) in the same period a year earlier.

Revenue fell 19 percent to $2.8 billion, hurt by lower revenue from government contracts.

Excluding a $21 million pretax loss and $3.3 million in pretax expenses related to cost cutting initiates, Health Net earned 81 cents per share. Analysts surveyed by Thomson Reuters on average expected adjusted per-share profit of 71 cents on revenue of $2.77 billion.

The company now sees full-year net income of between $3.00 and $3.05 per share, up from February expectations of at least $2.05.

“Our performance … again affirms our operating and financial progress on a number of fronts,” said Chief Executive Jay Gellert in a statement.

Shares closed down $2.10 or 8 percent, to $24.18 on the New York Stock Exchange.