UPDATE: WellCare Posts Downbeat Q4 Earnings, Issues Weak Outlook

WellCare Health Plans Inc. WCG reported downbeat earnings for the fourth quarter and issued a weak earnings forecast for the full year. For 2015, WellCare now projects earnings of $3.15 to $3.40 a share, versus analysts' expectations of $3.59 per share. The Tampa, Florida-based company posted quarterly earnings of $7.7 million, or $0.18 per share, compared to $42.9 million, or $0.97 per share, in the year-ago period. Excluding special items, the company's earnings slipped to $0.41 per share from $1.09 per share. Its premium revenue climbed 40% to $3.4 billion. However, analysts were expecting earnings of $0.66 per share on revenue of $3.43 billion. WellCare incurred around $15.1 million, or $0.22 per share of influenza costs in the quarter. Medical benefits expense climbed 12% to $3.0 billion. As of December 31, 2014, membership rose 45% to 4.1 million, versus membership of 2.8 million as of December 31, 2013. As of December 31, 2014, unregulated cash and investments fell to $89 million, from $458 million as of September 30, 2014. "While we are disappointed with our Fourth Quarter earnings due to the effect of the early and more severe flu season on our Medicaid business, we are focused on enhancing our core capabilities to deliver stronger performance in 2015 and to seize long-term growth opportunities," said Kenneth A. Burdick, WellCare`s Chief Executive Officer. WellCare shares rose 1.91% to close at $75.15 yesterday.