NEW YORK (TheStreet) -- Anthemundefined stock is falling 1.67% to $142.28 in midday trading on Wednesday after the company's 2015 earning guidance fell short of analysts' estimates.
The health insurance company set its 2015 earnings guidance at $10.10 to $10.20 per share, compared with the previous outlook of more than $10 per share.
Analysts had estimated earnings of $10.22 per share for the year.
This morning, Anthem reported better than expected 2015 third quarter financial results.
The Indianapolis-based company posted earnings of $2.73 per share for the quarter ended September 30, beating estimates by 40 cents.
Revenue increased 7.6% year-over-year to $19.78 billion, surpassing estimates of $19.64 billion.
The revenue growth was driven by a 20.8% increase in government business revenue.
Despite the rise in its government business revenue, Anthem warned that the unit, which offers government subsidized plans on an exchange created by the Affordable Care Act, will slow profit growth in 2016 and beyond, Reuters reports.
"We're trending the wrong direction on enrollment," CFO Wayne DeVeydt said during the earnings call this morning, Reuters noted.
Exchange customers declined by 69,000 during the latest quarter.
Separately, TheStreet Ratings team rates ANTHEM INC as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:
We rate ANTHEM INC (ANTM) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth, compelling growth in net income, revenue growth and largely solid financial position with reasonable debt levels by most measures. We feel its strengths outweigh the fact that the company shows low profit margins.
You can view the full analysis from the report here: ANTM