posted a rise in second-quarter earnings as the giant HMO continued to crack down on costs.
For its second quarter ended June 30, the Indianapolis-based company made $559 million, or 90 cents a share, up from the year-ago $238 million, or 83 cents a share. Excluding a dime-a-share charge related to a big class action settlement, latest-quarter earnings of $1 a share beat the consensus estimate on Wall Street by 3 cents.
Revenue surged to $11.3 billion from $4.6 billion a year earlier, as WellPoint completed its merger with Anthem. The company said revenue rose 8% on a comparable basis, while overhead held steady at 16.5% of revenue.
"We are delivering on all of our initiatives designed to ultimately provide our customers with more solutions to meet their health care needs," said CEO Larry C. Glasscock. "Our efforts are reflected in the membership growth we continue to see and the gains we have realized in all of our business segments. We expect to realize growth across our operations as we continue to enhance our capabilities, expand our product offerings and excel in meeting our customers' needs and expectations."
For the year, WellPoint guided toward in-line earnings of $3.91 a share, including the dime-a-share charge and a 4-cent tax benefit, but said revenue would be around $44.6 billion, which is nearly a billion dollars shy of the Thomson First Call analyst consensus estimate.
Early Wednesday, WellPoint was at $68.29.