WellPoint Fourth Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component WellPoint (NYSE:WLP) will unveil its latest earnings tomorrow, Wednesday, January 23, 2013. WellPoint is a health benefits company which offers a spectrum of network-based managed care plans to employers, individuals, and seniors.

WellPoint Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for profit of 96 cents per share, a decline of 3% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from $1.14. Between one and three months ago, the average estimate moved down. It also has dropped from 98 cents during the last month. For the year, analysts are projecting net income of $7.42 per share, a rise of 6% from last year.

Last quarter, the company came in at profit of $2.09 per share against a mean estimate of net income of $1.84 per share, beating estimates after missing them in the previous quarter. In the second quarter, it missed forecasts by one cent.

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Analyst Ratings: There are mostly holds on the stock with 10 of 18 analysts surveyed giving that rating.

A Look Back: In the third quarter, profit rose 1.2% to $691.2 million ($2.15 a share) from $683.2 million ($1.90 a share) the year earlier, exceeding analyst expectations. Revenue fell 0.3% to $15.35 billion from $15.4 billion.

Here’s how WellPoint traded following its last earnings report 3 months ago and leading up to its upcoming earnings report this week:

WLP

Wall St. Revenue Expectations: Analysts are projecting a rise of 0.7% in revenue from the year-earlier quarter to $15.28 billion.

Key Stats:

On the top line, the company is looking to get back on the right track after last quarter’s drop snapped a string of revenue increases. Revenue rose 4.6% in the fourth quarter of the last fiscal year, 3.5% in the first quarter and 2%in the second quarter before dropping in the third quarter.

After some good news last quarter, the company is trying to build on the result with this upcoming earnings announcement. Net income fell in the fourth quarter of the last fiscal year, the first quarter and the second quarter before snapping that run with a profit increase in the third quarter.

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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)