Earnings Preview: WellPoint

Jul.27.10 | About: Anthem, Inc. (ANTM)

WellPoint (WLP) is expected to report Q2 earnings Wednesday, July 28 before the market open with a conference call scheduled for 7:30 am ET.

Guidance

Analysts are looking for EPS of $1.55 on revenue of $14.6B. The consensus range is $1.39-$1.70 for EPS, and $14.3B-$14.91B for revenue, according to First Call.

Analyst Views

Possible positives for WellPoint's Q2 may include an increased Medicare Advantage and Medicaid membership. Negatives for the insurer may be seen in higher costs, health reform, and continued deterioration of the labor force.

On June 3, Leerink recommended buying Wellpoint shares ahead of the NAIC recommendations and the company's Q2 results. The firm believes the political and regulatory headline risk for the HMO group is mostly over and maintains an Outperform rating on the shares.

On June 12, Wellpoint was initiated with a Buy at Citigroup and a target of $58.