Wellpoint, Inc. Earnings Cheat Sheet: Consecutive Profit Quarter Streak Stays Intact
S&P 500 (NYSE:SPY) component Wellpoint, Inc. (NYSE:WLP) reported its results for the second quarter. WellPoint, Inc. is a health benefits company which offers a spectrum of network-based managed care plans to employers individuals and senior markets.
Wellpoint Earnings Cheat Sheet for the Second Quarter
Results: Net income for Wellpoint, Inc. fell to $701.6 million ($1.89 per share) vs. $722.4 million ($1.71 per share) a year earlier. This is a decline of 2.9% from the year earlier quarter.
Revenue: Rose 2.9% to $14.88 billion from the year earlier quarter.
Actual vs. Wall St. Expectations: WLP reported adjusted net income of $1.83 per share. By that measure, the company beat the mean estimate of $1.80 per share. Analysts were expecting revenue of $14.65 billion.
Quoting Management: “Our second quarter results exceeded our forecast and reflected the significant administrative cost savings we have been able to achieve through our continuous improvement and efficiency initiatives. This focus on execution has enabled us to exceed our goals through the first six months of the year,” said Angela F. Braly, chair, president and chief executive officer. “We remain committed to growth, continuous improvement, providing high quality products and services to our members, and creating the best health care value in our industry. By executing on these strategies, we now expect to achieve higher results in 2011, and believe that we can grow from these levels in the years ahead.”
A year-over-year revenue increase last quarter snaps a streak of four consecutive quarters of revenue declines. The worst quarter in that span was the fourth quarter of the last fiscal year, which saw a 23.1% decrease.
The company has now topped analyst estimates for the last four quarters. It beat the mark by 48 cents in the first quarter, by 12 cents in the fourth quarter of the last fiscal year, and by 16 cents in the third quarter of the last fiscal year.
While the company has been profitable for the last nine quarters, income has fallen year over year by an average of 14.4% over the past five quarters. The quarter hit the hardest was the fourth quarter of the last fiscal year, that saw a 80% drop.
Competitors to Watch: CIGNA Corporation (NYSE:CI), Humana Inc. (NYSE:HUM), UnitedHealth Group Inc. (NYSE:UNH), Aetna Inc. (NYSE:AET), Universal American Corp. (NYSE:UAM), Health Net, Inc. (NYSE:HNT), HealthSpring, Inc (NYSE:HS), Molina Healthcare, Inc. (NYSE:MOH), Coventry Health Care, Inc. (NYSE:CVH), and Triple-S Management Corp. (NYSE:GTS).
(Source: Xignite Financials)