IBJNews

WellPoint stock falls despite quarterly profit

Back to TopCommentsE-mailPrintBookmark and Share

WellPoint Inc. shares slipped in morning trading after the company beat analysts’ expectations for second-quarter profits but failed to raise its year-end earnings forecast.

Shares of the Indianapolis-based health insurer tumbled 5 percent, to $51.63 each.

WellPoint earned $1.50 per share in the latest quarter, excluding investment losses. Analysts were expecting $1.43 per share, according to a survey by Thomson Financial Network.

With investment losses, WellPoint earned $693.5 million in the quarter, or $1.43 per share. In the same quarter a year ago, the company earned $750.5 million, or $1.44 per share.

The 8-percent drop in profit stemmed from severe losses of insurance members at its employer customers, which WellPoint calls its commercial division. That unit shed 593,000 members since the same time a year ago.

Wells Fargo analyst Matt Perry wrote in a research note the enrollment declines were slightly larger than expected, according to the Associated Press.

"While the quarter was strong, the underlying results look mixed," he wrote. "The pressure in commercial fully insured margins is more severe than we expected, even after assuming some seasonality in results."

WellPoint lost nearly $108 million on its investments in the quarter, a slight improvement from a year ago, when it lost $121 million.

But the continuing investment losses forced WellPoint to lower its full-year profit forecast by 8 cents per share. It now expects to earn $5.06 to $5.12 for the year.

Revenue for the quarter fell by 1.4 percent, to $14.3 billion.

WellPoint’s customers decreased by 338,000 in the quarter, to a total of 33.2 million, but WellPoint projects it will gain as many back by the end of the year.

"We are pleased with our earnings-per-share results for the second quarter. We are managing diligently through these turbulent economic times and are currently taking a number of steps that will improve our future performance," said WellPoint CEO Angela Braly in a statement.

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. Those of you yelling to deport them all should at least understand that the law allows minors (if not from a bordering country) to argue for asylum. If you don't like the law, you can petition Congress to change it. But you can't blindly scream that they all need to be deported now, unless you want your government to just decide which laws to follow and which to ignore.

  2. 52,000 children in a country with a population of nearly 300 million is decimal dust or a nano-amount of people that can be easily absorbed. In addition, the flow of children from central American countries is decreasing. BL - the country can easily absorb these children while at the same time trying to discourage more children from coming. There is tension between economic concerns and the values of Judeo-Christian believers. But, I cannot see how the economic argument can stand up against the values of the believers, which most people in this country espouse (but perhaps don't practice). The Governor, who is an alleged religious man and a family man, seems to favor the economic argument; I do not see how his position is tenable under the circumstances. Yes, this is a complicated situation made worse by politics but....these are helpless children without parents and many want to simply "ship" them back to who knows where. Where are our Hoosier hearts? I thought the term Hoosier was synonymous with hospitable.

  3. Illegal aliens. Not undocumented workers (too young anyway). I note that this article never uses the word illegal and calls them immigrants. Being married to a naturalized citizen, these people are criminals and need to be deported as soon as humanly possible. The border needs to be closed NOW.

  4. Send them back NOW.

  5. deport now

ADVERTISEMENT