WellCare Health Plans (WCG) Tops Q3 EPS by 2c, Slight Miss on Revenues; Boosts FY18 EPS Outlook Above Consensus

WellCare Health Plans (NYSE: WCG) reported Q3 EPS of $3.33, $0.02 better than the analyst estimate of $3.31. Revenue for the quarter came in at $5.06 billion versus the consensus estimate of $5.06 billion.

• GAAP and adjusted total revenue of $5.1 billion and $5.0 billion for the third quarter of 2018 increased 14.9 percent and 13.3 percent, respectively, compared with the third quarter of 2017.
• GAAP and adjusted Medicaid Health Plans revenue of $3.2 billion and $3.1 billion for the third quarter of 2018 increased 18.4 percent and 15.9 percent, respectively, compared with the third quarter of 2017.
• In August 2018, WellCare raised approximately $2.1 billion in gross proceeds via common stock and debt offerings in order to fund the acquisition of Meridian Health Plan of Michigan, Inc., Meridian Health Plan of Illinois, Inc. and MeridianRx, a pharmacy benefit manager (collectively \"Meridian\").
• Effective September 1, 2018, WellCare closed the previously announced acquisition of Meridian.
• On September 27, 2018, WellCare announced it entered into agreements to acquire Aetna Inc.\'s entire standalone Medicare Part D prescription drug business. The closing of this transaction is subject to the closing of CVS Health\'s acquisition of Aetna and other customary closing conditions.
• WellCare\'s Medicare Advantage (MA) contracts serving certain of the company\'s members in California, Florida, Texas and New York/Maine, received an overall rating of 4.0 Stars or higher on CMS's 5-Star Rating System for the 2019 Plan Year. As of September 30, 2018, these contracts served approximately 42.3 percent of WellCare\'s total MA members, excluding our two dual demonstration MA contracts, which are not subject to Star Ratings.
• As of September 30, 2018, unregulated cash and investments were approximately $462.6 million.
• WellCare is increasing its full-year adjusted EPS guidance to a range of $10.90 to $11.00 from its previous guidance range of $10.70 to $10.90 per diluted share.

"We delivered strong operating and financial results in the third quarter," said Ken Burdick, WellCare's chief executive officer. "With the recent closing of the Meridian acquisition and our Medicaid contract wins in Florida and Arizona, we are excited about our substantial growth outlook as we move through the end of the year and into 2019."

"As a result of our performance, we are revising our full-year 2018 adjusted earnings per diluted share guidance to a range of $10.90 to $11.00," Burdick continued.

GUIDANCE:

WellCare Health Plans sees FY2018 EPS of $10.90-$11.00, versus the consensus of $10.88.

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

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