WellCare Health Plans Earnings: Here’s Why the Stock is Rising 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 3.93%.

WellCare Health Plans, Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 8.87% to $1.35 in the quarter versus EPS of $1.24 in the year-earlier quarter.

Revenue: Rose 28.76% to $2.33 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: WellCare Health Plans, Inc. reported adjusted EPS income of $1.35 per share. By that measure, the company beat the mean analyst estimate of $1.22. It beat the average revenue estimate of $2.28 billion.

Quoting Management: “Our second quarter results reflect the ongoing strengthening of our quality, service, and productivity, as well as execution on acquisition integration and organic growth,” said Alec Cunningham, WellCare`s CEO. “We see important opportunities for growth in 2014 and beyond and are continuing to invest in our capabilities to capitalize on those opportunities.”

Key Stats (on next page)…

Revenue increased 3.34% from $2.26 billion in the previous quarter. EPS increased 114.29% from $0.63 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 $1.52 to a profit $1.51. For the current year, the average estimate is a profit of $4.84, which is the same with that ninety days ago.

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