WellPoint Earnings Preview: Analysts Expect Rising Revenue, Falling EPS
WellPoint (NYSE: WLP) announces its next round of earnings this Wednesday, October 26, 2011. Here's Benzinga's advanced look at WellPoint's third quarter earnings report.
Earnings and Revenue:
Wall Street expects an EPS of $1.66/share and revenues of $15.12 billion. WellPoint's latest numbers will no doubt be compared with the company's year-ago quarter, when it reported a profit of $1.74/share on revenues of $14.33 billion. We'll have to wait for Wednesday to see if WellPoint reports a decline in EPS and a boost in revenue from the year-ago quarter, as analysts are predicting.
Here's how the company's reported EPS has stacked up against analyst estimates in the past:
| Quarter | Q2 | Q1 | Q4 | Q3 |
| EPS Estimate | $1.79 | $1.87 | $1.21 | $1.58 |
| EPS Actual | $1.83 | $2.35 | $1.33 | $1.74 |
Stock Performance:
Shares of WellPoint were trading at $65.25 as of October 20, 2011. Shares are up 16% year to date. For a full 12 months, the return has risen by 19.5%. Given that these returns are generally positive, long-term shareholders are probably satisfied going into this earnings release.
- Long-term shareholders are already enjoying 12-month gains prior to the announcement
Average Stock Rating:
The average rating by analysts for WellPoint is a Moderate Buy. Over the past three months this rating's strength has declined slightly.
Competitors:
Wondering how WellPoint compares to rivals in the same sector? Here are a few of the company's peers.
- Aetna (NYSE: AET): Moderate Buy with a $1.35 recent quarter EPS
- CIGNA (NYSE: CI): Hold with a $1.53 recent quarter EPS
- Coventry Health Care (NYSE: CVH): Hold with a $0.83 recent quarter EPS
- Triple-S Management (GTS): Hold with a $0.39 recent quarter EPS
WellPoint is in the medical-HMO industry, which has experienced price/earnings growth of 0.9%.
Finally, a description of the company's main areas of operation: WellPoint is a health benefits company which offers a spectrum of network-based managed care plans to employers, individuals, and seniors.
Take Action:
Now that you've gotten an advanced peak at WellPoint's upcoming earnings numbers, keep an eye out for any surprises in the report and be ready to take action. Also, check back in with us after the announcement for a full recap and a guide to your next steps.
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