IBJNews

WellPoint raises profit forecast after solid first quarter

Back to TopCommentsE-mailPrintBookmark and Share

WellPoint Inc. handily beat Wall Street’s expectations for earnings in the first quarter and raised its profit forecast for the rest of the year.

The Indianapolis-based health insurer earned $885.2 million in the first three months of the year, or $2.89 per share. Profit was 3.4 percent higher than in the same quarter a year ago.

Excluding investment losses and other extraordinary charges, the company would have earned $2.94 per share, a nearly 26-percent increase over the same quarter last year.

On that basis, analysts were expecting profit of $2.38 per share, according to a survey by Thomson Reuters.

The higher earnings prompted WellPoint to raise its full-year profit forecast to $7.75 per share, up from its previous prediction of $7.60 per share. Wall Street analysts have been forecasting $7.78 per share, even before WellPoint’s better-than-expected first-quarter results.

“We have modestly raised our full year EPS outlook as a reflection of our performance, but are still being prudent as many of the uncertainties inherent in our original guidance still exist,” WellPoint Chief Financial Officer Wayne DeVeydt said in a prepared statement.

WellPoint’s revenue in the quarter was $17.7 billion, below analysts’ predictions of $18 billion, but up 15 percent from a year ago.

The company lost 321,000 insurance plan members during the quarter, with the losses concentrated in its senior plans, local group employers, individuals and Medicaid plans.

WellPoint’s stock price has risen 14 percent this year, along with the broader markets. Its shares closed Tuesday at $69.33 apiece.
 

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. These liberals are out of control. They want to drive our economy into the ground and double and triple our electric bills. Sierra Club, stay out of Indy!

  2. These activist liberal judges have gotten out of control. Thankfully we have a sensible supreme court that overturns their absurd rulings!

  3. Maybe they shouldn't be throwing money at the IRL or whatever they call it now. Probably should save that money for actual operations.

  4. For you central Indiana folks that don't know what a good pizza is, Aurelio's will take care of that. There are some good pizza places in central Indiana but nothing like this!!!

  5. I am troubled with this whole string of comments as I am not sure anyone pointed out that many of the "high paying" positions have been eliminated identified by asterisks as of fiscal year 2012. That indicates to me that the hospitals are making responsible yet difficult decisions and eliminating heavy paying positions. To make this more problematic, we have created a society of "entitlement" where individuals believe they should receive free services at no cost to them. I have yet to get a house repair done at no cost nor have I taken my car that is out of warranty for repair for free repair expecting the government to pay for it even though it is the second largest investment one makes in their life besides purchasing a home. Yet, we continue to hear verbal and aggressive abuse from the consumer who expects free services and have to reward them as a result of HCAHPS surveys which we have no influence over as it is 3rd party required by CMS. Peel the onion and get to the root of the problem...you will find that society has created the problem and our current political landscape and not the people who were fortunate to lead healthcare in the right direction before becoming distorted. As a side note, I had a friend sit in an ED in Canada for nearly two days prior to being evaluated and then finally...3 months later got a CT of the head. You pay for what you get...

ADVERTISEMENT