WellCare Health Plans Earnings: Here’s Why Investors are Happy Now

WellCare Health Plans, Inc. (NYSE:WCG) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 5.86%.

WellCare Health Plans, Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 25.71% to $1.32 in the quarter versus EPS of $2.15 in the year-earlier quarter.

Revenue: Rose 23.41% to $1.99 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: WellCare Health Plans, Inc. reported adjusted EPS income of $1.32 per share. By that measure, the company beat the mean analyst estimate of $1.25. It beat the average revenue estimate of $1.89 billion.

Quoting Management: “As a result of our 2012 and more recent accomplishments, we are better positioned than we ever have been to deliver profitable growth over the long-term,” said Alec Cunningham, WellCare’s CEO. “We began 2013 with the most diversified portfolio of revenue and earnings streams in our history in a number of attractive markets that have sizeable government program growth prospects. We intend to continue to capitalize on those opportunities.”

Key Stats (on next page)…

Revenue increased 9.33% from $1.82 billion in the previous quarter. EPS increased 25.71% from $1.05 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.84 to a profit $0.83. For the current year, the average estimate has moved down from a profit of $4.96 to a profit of $4.92 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)