WellPoint Earnings: Everything You Must Know Now

WellPoint Inc. (NYSE:WLP) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company.

WellPoint Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 27.45% to $2.60 in the quarter versus EPS of $2.04 in the year-earlier quarter.

Revenue: Rose 14.21% to $17.6 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: WellPoint Inc. reported adjusted EPS income of $2.60 per share. By that measure, the company beat the mean analyst estimate of $2.11. It missed the average revenue estimate of $17.89 billion.

Quoting Management: “We are pleased with our second quarter results and encouraged by the positive momentum we have across the organization. Our Commercial businesses continue to perform well and we have achieved improvements in our Medicaid operations, largely reflecting benefits from the Amerigroup transaction,” said Joseph Swedish, chief executive officer. “Looking ahead, we continue to actively prepare for the coming marketplace changes, and believe we are well-positioned for the significant growth opportunities on the horizon. We’re also seeing improving trends in the Local Group and National Account ASO markets, and expect membership growth from those areas next year.”

Key Stats (on next page)…

Revenue decreased 0.51% from $17.69 billion in the previous quarter. EPS decreased 11.56% from $2.94 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 $2.00 to a profit $1.98. For the current year, the average estimate has moved up from a profit of $7.95 to a profit of $8.03 over the last ninety days.

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