WellPoint (WLP) Shares Tumble as Q4 Profit, Sales Come Up Light
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Price: $128.71 --0%
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Administrative fees: 1.33B
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BTTX, VAXX, ELYS, More
Financial Fact:
Administrative fees: 1.33B
Today's EPS Names:
BTTX, VAXX, ELYS, More
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WellPoint, Inc. (NYSE: WLP) shares are getting slammed Wednesday morning following fourth-quarter results. The stock last traded at $64.76, down nearly 7 percent for the session.
Total operating revenue rose 5.5 percent to $15.175 billion year over year as its consumer business experienced a 14.1 percent gain during the quarter. The Street’s consensus was $15.41 billion.
The SG&A expense ratio was 14.7 percent, a decrease of 160 basis points from 16.3 percent in the fourth quarter of 2010.
Operating margin fell 140 basis points to 3.4 percent as the company commercial business’s operating margin fell by 110 basis points to 5.9 percent and its consumer business’s operating margin declined by 290 basis points to -0.1 percent.
Net income was $335.3 million, or $0.96 per share, including net investment losses of $11.7 million after-tax, or $0.03 per share. The Street was forecasting earnings of $1.12 per share.
Operating cash flow was $57.9 million due to the timing of the October 2011 payment from the Centers for Medicare & Medicaid Services, which was received in the third quarter and totaled $596.5 million.
“Our fourth quarter results were at the high end of our guidance range and concluded a successful 2011. During the year, we added 928,000 new medical members and achieved financial results that were in-line or better than we expected in most of our businesses. We also created a more efficient organization and executed on a number of strategic initiatives as we prepare to capitalize on the important future growth opportunities we see in the marketplace,” said Angela F. Braly, chair, president and chief executive officer. “We have the right strategies in place to continue improving the lives of the people we serve and the health of our communities. We are looking forward to delivering even more health care value in 2012 and continue to expect long-term growth and success.”
In 2012, the company expects earnings to exceed $7.60 per share, while the Street forecasts earnings of $7.75 per share for the fiscal year. Operating revenue is expected to total approximately $62.1 billion, which is below the Street’s consensus of $62.76 billion.
Total operating revenue rose 5.5 percent to $15.175 billion year over year as its consumer business experienced a 14.1 percent gain during the quarter. The Street’s consensus was $15.41 billion.
The SG&A expense ratio was 14.7 percent, a decrease of 160 basis points from 16.3 percent in the fourth quarter of 2010.
Operating margin fell 140 basis points to 3.4 percent as the company commercial business’s operating margin fell by 110 basis points to 5.9 percent and its consumer business’s operating margin declined by 290 basis points to -0.1 percent.
Net income was $335.3 million, or $0.96 per share, including net investment losses of $11.7 million after-tax, or $0.03 per share. The Street was forecasting earnings of $1.12 per share.
Operating cash flow was $57.9 million due to the timing of the October 2011 payment from the Centers for Medicare & Medicaid Services, which was received in the third quarter and totaled $596.5 million.
“Our fourth quarter results were at the high end of our guidance range and concluded a successful 2011. During the year, we added 928,000 new medical members and achieved financial results that were in-line or better than we expected in most of our businesses. We also created a more efficient organization and executed on a number of strategic initiatives as we prepare to capitalize on the important future growth opportunities we see in the marketplace,” said Angela F. Braly, chair, president and chief executive officer. “We have the right strategies in place to continue improving the lives of the people we serve and the health of our communities. We are looking forward to delivering even more health care value in 2012 and continue to expect long-term growth and success.”
In 2012, the company expects earnings to exceed $7.60 per share, while the Street forecasts earnings of $7.75 per share for the fiscal year. Operating revenue is expected to total approximately $62.1 billion, which is below the Street’s consensus of $62.76 billion.
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