S&P 500 (NYSE:SPY) component WellPoint, Inc. (NYSE:WLP) will unveil its latest earnings on Wednesday, July 27, 2011. WellPoint, Inc. is a health benefits company which offers a spectrum of network-based managed care plans to employers individuals and senior markets. UnitedHealth Group Inc. Earnings Cheat Sheet: Beats the Street on Profit Rise>>
WellPoint, Inc. Earnings Preview Cheat Sheet
Wall St. Earnings Expectations: The average estimate of analysts is for net income of $1.78 per share, a rise of 6.6% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved up from $1.73. Between one and three months ago, the average estimate moved up, and has risen from $1.77 during the last month. For the year, analysts are projecting profit of $7.09 per share, a rise of 5.2% from last year.
Past Earnings Performance: The company has beaten estimates the last four quarters and is coming off a quarter where it topped forecasts by 48 cents, reporting net income of $2.35 per share against a mean estimate of profit of $1.87 per share.
Wall St. Revenue Expectations: On average, analysts predict $14.65 billion in revenue this quarter, a rise of 3% from the year ago quarter. Analysts are forecasting total revenue of $59.5 billion for the year, a rise of 2.9% from last year’s revenue of $57.84 billion.
Analyst Ratings: Analysts are bullish on this stock with 16 analysts rating it as a buy, none rating it as a sell and eight rating it as a hold.
Revenue has fallen in the past four quarters. Revenue declined 1.4% to $14.89 billion in first quarter. The figure fell 23.1% in the fourth quarter of the last fiscal year from the year earlier, dropped 5.4% in third quarter of the last fiscal year from the year-ago quarter and 6.2% in the second quarter of the last fiscal year.
The increase in profit in the first quarter comes after net income fell in the previous quarter. In the first quarter, net income rose 5.7% to $926.6 million. In the fourth quarter of the last fiscal year, net income fell 80%.
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).
Stock Price Performance: During June 22, 2011 to July 21, 2011, the stock price had dropped $3.16 (-4.1%) from $77.81 to $74.65. The stock price saw one of its best stretches over the last year between December 30, 2010 and January 12, 2011 when shares rose for 10-straight days, rising 9.4% (+$5.28) over that span. It saw one of its worst periods between July 1, 2011 and July 11, 2011 when shares fell for six-straight days, falling 6.9% (-$5.58) over that span. Shares are up $18.19 (+32.2%) year to date.
(Source: Xignite Financials)