IBJNews

WellPoint's profit falls, but beats analyst expectations

Back to TopCommentsE-mailPrintBookmark and Share

First-quarter profit declined nearly 8 percent at WellPoint Inc., but the health insurer beat analysts’ expectations and raised its full-year profit forecast by a nickel per share.

The Indianapolis-based company posted earnings of $857 million, or $2.53 per share, down from $927 million, or $2.44 per share in the same period a year ago. The per-share profits increased because WellPoint has been reducing its total shares through a buyback program.

Investment gains in the most recent quarter were 19 cents per share, a dime per share higher than a year ago.

Excluding investment gains, WellPoint would have earned $2.34 per share. On that basis, Wall Street analysts were expecting $2.27 per share, according to a survey by Thomson Reuters.

“Our first quarter results exceeded our expectations and were driven by improved performance in the senior business and continued strong operating results in our commercial segment. We also executed well in the capital management areas of our company,” said WellPoint CEO Angela Braly in a prepared statement.

Revenue during the quarter totaled $15.42 billion, also beating analysts’ expectations of $15.26 billion.

WellPoint said gains from its senior business improved, as the company recovered from mispricing some of its Medicare Advantage policies last year.

But overall membership in its health plans declined in the quarter by 600,000. WellPoint expects that total to drop by another 100,000 during the rest of the year.

WellPoint could also benefit from muted spending on health care by consumers. WellPoint now expects to spend 85.1 percent of customers’ premiums on medical care in 2012, down from a prediction of 85.3 percent issued in January.

During all of 2012, WellPoint now expects to earn at least $7.84 per share. Excluding first-quarter investment gains, that forecast would be $7.65 per share—a nickel higher than the prediction of $7.60 per share WellPoint gave in January.

WellPoint shares closed Tuesday at $70.76 apiece. The stock price has risen nearly 7 percent so far this year, but has lagged the broader markets and WellPoint’s key competitors.

ADVERTISEMENT

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in IBJ editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by
ADVERTISEMENT

facebook - twitter on Facebook & Twitter

Follow on TwitterFollow IBJ on Facebook:
Follow on TwitterFollow IBJ's Tweets on these topics:
 
Subscribe to IBJ
  1. I am a Lyft driver who is a licensed CDL professional driver. ALL Lyft drivers take pride in providing quality service to the Indianapolis and surrounding areas, and we take the safety of our passengers and the public seriously.(passengers are required to put seat belts on when they get in our cars) We do go through background checks, driving records are checked as are the personal cars we drive, (these are OUR private cars we use) Unlike taxi cabs and their drivers Lyft (and yes Uber) provide passengers with a clean car inside and out, a friendly and courteous driver, and who is dressed appropriately and is groomed appropriately. I go so far as to offer mints, candy and/or small bottle of water to the my customers. It's a mutual respect between driver and passenger. With Best Regards

  2. to be the big fish in the little pond of IRL midwest racin' when yer up against Racin' Gardner

  3. In the first sentance "As a resident of one of these new Carmel Apartments the issue the local governments need to discuss are build quality & price." need a way to edit

  4. As a resident of one of these new Carmel Apartments the issue the local governments need to discuss is build quality & price. First none of these places is worth $1100 for a one bedroom. Downtown Carmel or Keystone at the Crossing in Indy. It doesn't matter. All require you to get in your car to get just about anywhere you need to go. I'm in one of the Carmel apartments now where after just 2.5 short years one of the kitchen cabinet doors is crooked and lawn and property maintenance seems to be lacking my old Indianapolis apartment which cost $300 less. This is one of the new star apartments. As they keep building throughout the area "deals" will start popping up creating shoppers. If your property is falling apart after year 3 what will it look like after year 5 or 10??? Why would one stay here if they could move to a new Broad Ripple in 2 to 3 years or another part of the Far Northside?? The complexes aren't going to let the "poor" move in without local permission so that's not that problem, but it the occupancy rate drops suddenly because the "Young" people moved back to Indy then look out.

  5. Why are you so concerned about Ace hardware? I don't understand why anyone goes there! Every time ive gone in the past, they don't have what I need and I end up going to the big box stores. I understand the service aspect and that they try to be helpful but if they are going to survive I think they might need to carry more specialty parts.

ADVERTISEMENT