Earnings Preview: WellPoint

WellPoint (WLP) is expected to report Q3 earnings Wednesday, October 28 before the market open, with a conference call scheduled for 8:30am ET.

Guidance

Analysts are looking for EPS of $1.38 on revenue of $15.15B. The consensus range is $1.27-$1.44 for EPS, and $14.7B-$15.49B for revenue, according to First Call. Positives for WellPoint include a strong balance sheet and a diverse product mix that includes a tie-in with Blue Cross/Blue Shield. Negatives for the company include an increasingly competitive environment in a weak economy. Impending health care reform is also weighing on the entire managed care sector. On October 25, Barron's said managed care stocks should reward patient investors with the group trading at the lowest price/earnings ratios of any major group.