WellPoint Earnings: Here’s Why Investors are Buying Shares 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. Shares are up 2.47%.

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WellPoint Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 25.64% to $2.94 in the quarter versus EPS of $2.34 in the year-earlier quarter.

Revenue: Rose 13.82% to $17.55 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: WellPoint Inc. reported adjusted EPS income of $2.94 per share. By that measure, the company beat the mean analyst estimate of $2.38. It missed the average revenue estimate of $18.02 billion.

Quoting Management: “I am encouraged by the operating trends we experienced in the first quarter and the momentum we have as an enterprise. I am optimistic about the prospects for WellPoint and the opportunity we have to deliver value for our customers, members, associates and shareholders,” said Joseph Swedish, chief executive officer. “As I look ahead at the coming marketplace changes, there will be challenges and opportunities, and I believe we will be successful in helping to enhance health care quality and affordability across our markets and expand our role as a trusted partner advancing solutions to this country’s health care challenges.”

Key Stats (on next page)…

Revenue increased 12.94% from $15.54 billion in the previous quarter. EPS increased 185.44% from $1.03 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 $2.12 to a profit $2.11. For the current year, the average estimate has moved down from a profit of $7.83 to a profit of $7.78 over the last ninety days.

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