WellCare Health Plans Crushes Earnings Estimates
WellCare Health Plans (NYS: WCG) reported earnings on May 2. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended March 31 (Q1), WellCare Health Plans beat expectations on revenues and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share expanded significantly.
Gross margins shrank, operating margins increased, net margins increased.
WellCare Health Plans reported revenue of $1.79 billion. The nine analysts polled by S&P Capital IQ expected sales of $1.73 billion on the same basis. GAAP reported sales were 21% higher than the prior-year quarter's $1.47 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $1.32. The 11 earnings estimates compiled by S&P Capital IQ predicted $0.54 per share. GAAP EPS of $1.18 for Q1 were 136% higher than the prior-year quarter's $0.50 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 15.0%, 60 basis points worse than the prior-year quarter. Operating margin was 4.5%, 210 basis points better than the prior-year quarter. Net margin was 2.9%, 150 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $1.75 billion. On the bottom line, the average EPS estimate is $1.20.
Next year's average estimate for revenue is $7.03 billion. The average EPS estimate is $4.66.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 449 members out of 491 rating the stock outperform, and 42 members rating it underperform. Among 131 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 123 give WellCare Health Plans a green thumbs-up, and eight give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on WellCare Health Plans is outperform, with an average price target of $75.60.
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At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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