WellCare Hikes Full-Year Outlook
NEW YORK (TheStreet) -- WellCare Health Plans (WCG) - Get Report reported third-quarter earnings that handily beat analysts' estimates and the health care company raised its full-year outlook.
WellCare upped its full-year adjusted net income outlook to between $2.30 and $2.35 a share from the previously-expected range of $2.05 and $2.20 a share.
The consensus estimate for full-year earnings is $2.33 a share, according to Thomson Reuters.
Premium revenue is now expected to be between $5.4 billion and $5.45 billion, an increase from the previous guidance of $5.3 billion to $5.4 billion.
The rosier outlook came as WellCare said adjusted net income for the third quarter rose about 9% to $37.9 million, or 89 cents a share, from $34.7 million, or 82 cents a share, for the same period last year. Analysts, on average, predicted earnings of 65 cents a share for the quarter.
The improvement was mainly attributable to the performance of a Medicare prescription drug plan and Medicaid segments, as well as lower selling, general and administrative expense, WellCare said.
Premium revenue for the third quarter fell 17% to $1.39 billion from $1.67 billion the year before due to the withdrawal of PFFS Medicare Advantage plans and the impact of a 2009 CMS Centers for Medicare and Medicaid Services marketing sanction on Medicare Advantage CCP premium revenue, offset in part by growth in revenue for the Medicaid and PDP segments.
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-- Written by Andrea Tse in New York.
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