WellCare Health Plans (WCG) Tops Q1 EPS by 45c, Beats on Revenues; Boosts FY18 EPS Guidance

WellCare Health Plans (NYSE: WCG) reported Q1 EPS of $2.47, $0.45 better than the analyst estimate of $2.02. Revenue for the quarter came in at $4.63 billion versus the consensus estimate of $4.69 billion.

Key Highlights

• GAAP and adjusted total premium revenue of $4.6 billion and $4.5 billion for the first quarter of 2018 increased 17.2 percent and 15.6 percent, respectively, compared with the first quarter of 2017.
• GAAP and adjusted Medicaid Health Plans premium revenue of $2.8 billion and $2.7 billion for the first quarter of 2018 increased 8.7 percent and 6.2 percent, respectively, compared with the first quarter of 2017.
• Medicare Health Plans premium revenue of $1.6 billion for the first quarter of 2018 increased 42.2 percent compared with the first quarter of 2017.
• GAAP and adjusted Medicaid Health Plans MBR for the first quarter of 2018 decreased 310 basis points and 110 basis points, respectively, compared with the first quarter of 2017.
• GAAP and adjusted net income margin for the first quarter of 2018 increased approximately 50 basis points to 2.2 percent and approximately 70 basis points to 2.5 percent, respectively, compared with the first quarter of 2017.
• On April 24, 2018, WellCare of Florida, Inc., a subsidiary of WellCare and known as Staywell Health Plan, received a Notice of Agency Decision from the Florida Agency for Health Care Administration that it intends to award Staywell a new five-year contract to provide managed care services to Medicaid-eligible beneficiaries, including Managed Medical Assistance and Long-Term Care in 10 of 11 regions and Serious Mental Illness Specialty Plan services statewide. The new Statewide Medicaid Managed Care program is expected to begin no earlier than October 1, 2018.
• As previously announced on March 13, 2018, Care1st Arizona, a subsidiary of WellCare, was selected to enter a contract with the state of Arizona\'s Medicaid program, the Arizona Health Care Cost Containment System (AHCCCS) to coordinate the provision of physical and behavioral services in the Central and North geographic service areas (GSAs). Services under the new contract are expected to begin on October 1, 2018.
• As of March 31, 2018, unregulated cash and investments were approximately $561.3 million.
• 2018 Financial Outlook

WellCare is increasing its full-year adjusted EPS guidance to a range of $10.00 to $10.30 from its previous guidance range of $9.55 to $9.85 per diluted share. Refer to the Appendix included in this news release for specific 2018 guidance metrics, related footnotes and basis of presentation.

GUIDANCE:

WellCare Health Plans sees FY2018 EPS of $10.00-$10.30, versus the consensus of $9.82.

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

You May Also Be Interested In

• Tesla plans 'flying' Roadster stunt at SpaceX Texas site as early as August
• Star Equity Holdings (STRR) Misses Q2 EPS by 8c
• Outlook Therapeutics (OTLK) Misses Q3 EPS by 9c