Stephen Simpson, CFA
Aug. 28, 2013, 10:19 AM
- The Department of Health & Human Services (HHS) has reportedly delayed the signing of final agreements with insurance plans that are to be sold on health insurance exchanges starting on October 1.
- The HHS intends to sign the plans - which are a crucial part of Obamacare - in mid-September rather than from September 5-9, as previously intended. The reasons for the delay aren't clear.
- The HHS says it's "on track to open" the marketplaces on time on October 1, although the delay raises doubts about whether that's the case.
- "Having everything ready on October 1 is not a critical issue," says an administration official who worked on Obamacare. "What matters to people is January 1, which is when the coverage is supposed to start. If that were delayed, it would be a substantive setback.
- Related tickers: AET, UNH, HNT, CI, WLP, UAM, HUM, MOH, CNC, CVH, MGLN
Aug. 15, 2013, 3:22 PM
- Many health insurers are gearing up to limit the choices of doctors and hospitals they'll cover. Why? The cost.
- Smaller networks of providers generally translate to lower premiums, because insurers can negotiate discounts with health-care providers who will then have less competition for patients within the network.
- Insurers are betting that consumers who buy plans on the exchanges will be willing to trade some choice and flexibility in order to get cheaper premiums.
- The backlash is that consumers will generally have to pay the cost out of his own pocket if they want to see physicians outside the system.
Jul. 24, 2013, 7:04 AM
More on WellPoint (WLP) Q2: net profit +24% to $800.1M as benefit expense ratio falls to 83.9% from 85.4% last year. Medical enrollment +6.3% to 35.7M members. Ups full-year EPS to at least $8 from previous forecast of $7.75 and vs consensus of $8.03; also predicts operating revenue of $70-72B vs expectations of $71.34B. Declares Q3 dividend of $0.375. (PR)| Jul. 24, 2013, 7:04 AM
Jul. 24, 2013, 6:02 AMWellPoint (WLP): Q2 EPS of $2.60 beats by $0.49. Revenue of $17.6B misses by $0.29B. (PR) | Jul. 24, 2013, 6:02 AM
Jul. 24, 2013, 12:05 AM
Notable earnings before Wednesday’s open: ABC, AOS, ARMH, ARW, ATI, BA, CAT, CFR, CKSW, CP, CVE, DAL, DPS, ECA, ELN, EMC, EVR, F, GD, GNTX, ICON, LAD, LCC, LL, LLY, MCO, MDCO, MSA, MSI, MTH, NDAQ, NOC, NOR, NYCB, OC, OCR, PCH, PEP, PLD, PVR, PX, RAI, RCI, RDN, RES, RLGY, SAVE, STX, TEL, TMO, TROW, TUP, WLP, WYN| Jul. 24, 2013, 12:05 AM
Jul. 23, 2013, 5:30 PM
Notable earnings before Wednesday’s open: ABC, AOS, ARMH, ARW, ATI, BA, CAT, CFR, CKSW, CP, CVE, DAL, DPS, ECA, ELN, EMC, EVR, F, GD, GNTX, ICON, LAD, LCC, LL, LLY, MCO, MDCO, MSA, MSI, MTH, NDAQ, NOC, NOR, NYCB, OC, OCR, PCH, PEP, PLD, PVR, PX, RAI, RCI, RDN, RES, RLGY, SAVE, STX, TEL, TMO, TROW, TUP, WLP, WYN| Jul. 23, 2013, 5:30 PM
Jul. 16, 2013, 2:39 PM
It's all about management's commentary on EPS growth for managed care stocks, Deutsche's Scott Fidel says, noting that investors are already "expecting strong quarterly results based on continued subdued health care utilization trends." Watch the "tone" on the CCs for hints about the prospects for earnings in 2014 and "key revenue and margin drivers," Fidel adds. Price targets are hiked for Aetna (AET -1.8%), Cigna (CI -1.5%), Magellan Health (MGLN -0.3%), Health Net (HNT -1.1%), UnitedHealth (UNH -1.2%), WellPoint (WLP -0.4%), Humana (HUM +0.1%), Universal American (UAM -0.8%), Centene (CNC +0.6%) Molina (MOH +0.7%), WellCare Health Plans (WCG +1.1%), eHealth (EHTH -3%), and Healthways (HWAY -1.9%).| Jul. 16, 2013, 2:39 PM
Jun. 25, 2013, 11:51 AM
May 15, 2013, 6:24 PMWellPoint (WLP) declares $0.375/share quarterly dividend, in line with previous. Forward yield 1.93%. For shareholders of record June 10. Payable June 25. Ex-div date June 06. (PR) | May 15, 2013, 6:24 PM
May 14, 2013, 10:02 AM
"We believe one of the biggest questions on investors' minds is can [they] grow FY14 earnings," says Jefferies, stating what might fairly be called "the obvious" in a note upgrading WellPoint (WLP +1.5%) to Buy from Hold and raising the stock's price target to $92. After a "deep dive" analysis, the investment bank says it sees 7-8% EPS growth against the Street's 2.4% consensus and predicts $8.61 per share for FY14, making WLP the cheapest MCO stock, trading at 8.8x forward earnings. Meanwhile, Cigna (CI -1.8%) is "ready for a breather" and catches a downgrade to Hold from Buy — CI's CFO Ralph Nicoletti announced Monday he is leaving the company for personal reasons.| May 14, 2013, 10:02 AM
Apr. 24, 2013, 10:41 AMWellpoint (WLP +6.5%) moves higher this morning after its Q1 bottom line easily beat estimates, aided by a lower tax rate and a decline in medical costs in its Local Group. Revenue jumped 15% Y/Y, boosted by the late-year acquisition of Amerigroup. Looking forward, the company raises FY13 guidance but maintains a cautious outlook due to the significant changes looming in Medicaid. It reduces the low end of FY13 revenue guidance by $500M, now expecting between $71B and $73B, but ups its EPS estimate by $0.15 to $7.75. Analysts are looking for $7.78. | Apr. 24, 2013, 10:41 AM
Apr. 24, 2013, 6:01 AMWellPoint (WLP): Q1 EPS of $2.94 beats by $0.56. Revenue of $17.5B (+15.8% Y/Y) misses by $0.53B. (PR) | Apr. 24, 2013, 6:01 AM | 1 Comment
Apr. 24, 2013, 12:05 AM
Notable earnings before Wednesday’s open: ABB, ABX, ASH, ATI, AVY, BA, BYD, CFR, CKSW, COR, CP, CS, CVE, DPS, EDU, ELN, EMN, ERIC, F, FDML, GD, GLW, GRA, HCBK, HES, ICON, LAD, LL, LLY, LO, MDCO, MSI, MTH, NDAQ, NOC, NS, NVS, NYCB, OC, OCR, OSIS, PG, PLD, PX, RES, ROK, S, SO, SVU, TEL, TKR, TMO, TROW, TUP, USG, VLY, VMED, WAB, WHR, WLP, WM, WYN| Apr. 24, 2013, 12:05 AM
Apr. 23, 2013, 5:30 PM
Notable earnings before Wednesday’s open: ABB, ABX, ASH, ATI, AVY, BA, BYD, CFR, CKSW, COR, CP, CS, CVE, DPS, EDU, ELN, EMN, ERIC, F, FDML, GD, GLW, GRA, HCBK, HES, ICON, LAD, LL, LLY, LO, MDCO, MSI, MTH, NDAQ, NOC, NS, NVS, NYCB, OC, OCR, OSIS, PG, PLD, PX, RES, ROK, S, SO, SVU, TEL, TKR, TMO, TROW, TUP, USG, VLY, VMED, WAB, WHR, WLP, WM, WYN| Apr. 23, 2013, 5:30 PM
Apr. 17, 2013, 12:33 PM
The big surge in health care stocks earlier this month just prior to the government's decision on Medicare Advantage rates may have been due to an email to sent by a former top congressional aide who now happens to be an outside lobbyist for Humana (HUM -1.9%). The email, which is now subject to an SEC probe, was sent to a Washington investment-research firm and circulated to clients just minutes before the close of trading, saying that "credible sources" had told them a decision had been made to restore the payments.| Apr. 17, 2013, 12:33 PM | 4 Comments
Mar. 31, 2013, 11:33 AM
What makes a good share buyback? Barron's cites four factors: i) Shares are in a downtrend. ii) It's a long-term strategy and not a short-term fix ( = >1% share count reduction/quarter). iii) Shares are cheap based on price-to-book. iv) The company has a rising dividend. The stocks that pass the test? Wellpoint (WLP), Seagate (STX), Western Union (WU) and AT&T (T).| Mar. 31, 2013, 11:33 AM | 31 Comments