Earnings Preview: Wellpoint

Apr.24.12 | About: Anthem, Inc. (ANTM)

Wellpoint (WLP) is expected to report Q1 earnings before the market open on Wednesday, April 25 with a conference call scheduled for 8:30 am ET.


Analysts are looking for EPS of $2.27 on revenue of $15.26B. The consensus range is $2.00-$2.47 for EPS, and $14.98B-$15.32B for revenue, according to First Call. After reporting disappointing EPS and revenue in Q4, the company said it expects FY12 EPS to be at least $7.60 and FY12 revenue of $62.1B. In its earnings conference call, the company said it expects membership decline of 600,000 in FY12 and ingroup membership change will continue to be a negative. At a Barclays health conference last month, however, Wellpoint said it expects membership growth in 2013. Investors will look to hear of any updates in membership numbers and any more encouraging signs in healthcare use trends.

Analyst Views

Wellpoint was downgraded to Hold at Jeffries, citing high expectations and execution risk. Barron's, on the other hand, said the company is too cheap to ignore.