Wellpoint Earnings Preview: Get Ahead of the Analysts

Wellpoint (NYSE:WLP) will report earnings before markets open on Wednesday, April 24th. WellPoint Inc. is a health benefits company. The Company provides health benefits, dental and vision benefits, pharmacy benefits, life insurance, and life and disability insurance benefits. WellPoint operations include Blue Cross and Blue Shield plans.

Here is your Cheat Sheet to Wellpoint Earnings:

Earnings Expectations: Analysts expect earnings of $2.39 per share on revenues of $18.05 billion. Currently, the company’s P/E ratio stands at 8.21.

Analyst Trends:

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 $2.14 to a profit $2.12. For the current year, the average estimate is a profit of $7.78, which is worse than the estimate ninety days ago.

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Earnings Trends:

Here’s how Wellpoint has been performing on an annual basis:

Fiscal Year 2008 2009 2010 2011 2012
Revenue ($) in millions 61,250 64,940 58,700 60,710 61,710
Diluted EPS ($) 4.76 9.88 6.94 7.25 8.18

Next, our CHEAT SHEET investing framework asks us to drill down to the recent quarterly data:

Quarter Dec. 31, 2011 Mar. 31, 2012 Jun. 30, 2012 Sep. 30, 2012 Dec. 31, 2012
Revenue ($) in millions 15,320 15,420 15,410 15,350 15,540
Diluted EPS ($) 1.02 2.53 1.94 2.15 1.56

Past Performance:
Wellpoint has beat analyst estimates 3 times in the past four quarters. Shareholders could expect a boost if the company beats estimates.

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