UPDATE: WellCare Health Plans (WCG) Tops Q2 EPS by 28c, Beats on Revenues; Raises FY17 EPS Outlook

WellCare Health Plans (NYSE: WCG) reported Q2 EPS of $2.52, $0.28 better than the analyst estimate of $2.24. Revenue for the quarter came in at $4.26 billion versus the consensus estimate of $4.23 billion.

Key Highlights

• GAAP and adjusted total premium revenue for the second quarter of 2017 increased 19.6 percent and 21.6 percent, respectively, compared with the second quarter of 2016.
• GAAP and adjusted Medicaid Health Plans premium revenue for the second quarter of 2017 increased 15.7 percent and 18.7 percent, respectively, compared with the second quarter of 2016.
• Medicare Health Plans premium revenue for the second quarter of 2017 increased 33.3 percent compared with the second quarter of 2016.
• As previously announced, WellCare completed its acquisition of Universal American Corp. (\"Universal American\") on April 28, 2017. The company\'s consolidated financial results for the second quarter of 2017 include the results of Universal American since that date.
• On May 1, 2017, WellCare began services under the MO HealthNet Managed Care (Medicaid) program\'s statewide expansion. As of June 30, 2017, the company served approximately 298,000 Medicaid members in Missouri.
• On May 1, 2017, WellCare completed its previously announced acquisition of certain Arizona Medicaid assets of Phoenix Health Plan (\"PHP assets\"). The transaction included the transfer of PHP\'s Medicaid members to Care1st Arizona Health Plan, Inc. (\"Care1st Arizona\"), a wholly owned subsidiary of WellCare. As of June 30, 2017, Care1st Arizona served approximately 158,000 Medicaid members in Arizona.

2017 Financial Outlook

WellCare is increasing its full-year 2017 adjusted EPS guidance to a range of $6.75 to $6.95 from its previous guidance range of $6.55 to $6.80 per diluted share. Please refer to the guidance table included in this release for specific 2017 guidance metrics.

GUIDANCE:

WellCare Health Plans sees FY2017 EPS of $6.75-$6.80, versus the consensus of $6.86.

For earnings history and earnings-related data on WellCare Health Plans (WCG) click here.

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