This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

WellPoint Warns on 2006

WellPoint (WLP) has just hiccupped.

The giant health insurer -- which last year swallowed one of its biggest competitors whole -- has finally delivered some news that could prove difficult to digest. After the market closed on Tuesday, the company published 2006 guidance that fell short of Wall Street expectations.

Excluding special items, WellPoint plans to deliver earnings of $4.69 a share next year. Analysts, on average, were expecting $4.76 instead.

The company's stock, hovering near an all-time ahead of that update, tumbled 3.4% to $76.40 following the news.

For its part, WellPoint portrayed its outlook as strong. However, the company did say that it has completed a new strategic plan that addresses the challenges -- as well as the opportunities -- that lie ahead.

"The growth model we have developed is based on our proven ability to increase our membership in a disciplined manner while continually reducing our [selling, general and administrative] cost ratio and effectively using our cash flow," stated WellPoint CFO David Colby.

WellPoint expects to grow its enrollment by 3% -- and its revenue by a much stronger 11% -- in the coming year. It also plans to keep cutting its overhead costs so that it can grow earnings, as promised, by 15% a year.

Still, in its published outlook, WellPoint spent almost as much time celebrating the recent past -- when it became the largest health insurer in the country -- as it did looking ahead.

"Looking back, 2005 was a truly outstanding year for the company," CEO Larry Glasscock said. "In addition to successfully integrating Anthem and WellPoint, we also completed several significant milestones that helped to strongly position the company for continued success in the coming years."

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,702.44 -177.92 -1.05%
S&P 500 1,943.71 -26.36 -1.34%
NASDAQ 4,391.0280 -71.8740 -1.61%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs