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WellPoint Crushes Earnings Estimates

Wednesday - 7/24/2013, 2:00am  ET

WellPoint reported earnings on July 24. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended June 30 (Q2), WellPoint met expectations on revenues and crushed expectations on earnings per share.

Compared to the prior-year quarter, revenue expanded significantly. Non-GAAP earnings per share expanded significantly. GAAP earnings per share expanded significantly.

Margins grew across the board.

Revenue details
WellPoint logged revenue of $17.60 billion. The 15 analysts polled by S&P Capital IQ expected to see revenue of $17.85 billion on the same basis. GAAP reported sales were 16% higher than the prior-year quarter's $15.41 billion.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $2.60. The 20 earnings estimates compiled by S&P Capital IQ averaged $2.11 per share. Non-GAAP EPS of $2.60 for Q2 were 27% higher than the prior-year quarter's $2.04 per share. GAAP EPS of $2.64 for Q2 were 36% higher than the prior-year quarter's $1.94 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 22.3%, 80 basis points better than the prior-year quarter. Operating margin was 7.7%, 10 basis points better than the prior-year quarter. Net margin was 4.5%, 30 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
Next quarter's average estimate for revenue is $17.86 billion. On the bottom line, the average EPS estimate is $1.97.

Next year's average estimate for revenue is $71.26 billion. The average EPS estimate is $8.07.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 936 members out of 994 rating the stock outperform, and 58 members rating it underperform. Among 324 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 317 give WellPoint a green thumbs-up, and seven give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on WellPoint is outperform, with an average price target of $82.82.

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This article was originally published as WellPoint Crushes Earnings Estimateson Fool.com

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