WellCare Health Plans (WCG) Tops Q4 EPS by 11c, Revenues In-Line; Boosts FY18 EPS Guidance Above Consensus

WellCare Health Plans (NYSE: WCG) reported Q4 EPS of $0.32, $0.11 better than the analyst estimate of $0.21. Revenue for the quarter came in at $4.32 billion versus the consensus estimate of $4.32 billion.

2018 Financial Outlook

WellCare is increasing its full-year 2018 adjusted EPS to a range of $9.55 to $9.85 from its previous guidancerange of $8.40 to $8.65 per diluted share. Refer to the Appendix included in this news release for specific 2018 guidance metrics, related footnotes and basis of presentation.

Key Highlights

• GAAP earnings per diluted share for the full-year 2017 of $8.31 increased 53.0 percent compared with the full-year 2016.
• Adjusted earnings per diluted share for the full-year 2017 of $8.52 increased 43.0 percent compared with the full-year 2016.
• GAAP net income margin for the full-year 2017 was 2.2 percent, a 50 basis point improvement compared with the full-year 2016.
• Adjusted net income margin for the full-year 2017 was 2.3 percent, a 40 basis point improvement compared with the full-year 2016.
• GAAP Medicaid Health Plans premium revenue of $10.7 billion for the full-year 2017 increased 12.9 percent compared with the full-year 2016.
• Adjusted Medicaid Health Plans premium revenue of $10.6 billion for the full-year 2017 increased 16.0 percent compared with the full-year 2016.
• Medicare Health Plans premium revenue of $5.3 billion for the full-year 2017 increased 37.2 percent compared with the full-year 2016.
• Adjusted Medicaid Health Plans MBR for the full-year 2017 was 88.8 percent, an improvement of 70 basis points compared with the full-year 2016.
• In the fourth quarter of 2017, WellCare recorded a $45.6 million, or $0.64 per diluted share, premium deficiency reserve (\"Illinois PDR\") in connection with its new Medicaid managed care contract with Illinois HFS that was effective on January 1, 2018. The PDR reflects the initial premium rate structure, estimated medical benefits and other costs expected to be incurred during the initial four-year contractual term of the contract.
• As of December 31, 2017, unregulated cash and investments were approximately $617.0 million.

GUIDANCE:

WellCare Health Plans sees FY2018 EPS of $9.55-$9.85, versus the consensus of $9.19.

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

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