WellCare Health Q1 Profit Surges, Beats Estimates; Lifts FY16 Earnings View

(RTTNews) - WellCare Health Plans Inc. (WCG) Tuesday announced a significant increase in first quarter net income to $37.1 million or $0.83 per share from $17.5 million or $0.39 per share last year. On an adjusted basis, earnings were $47 million or $1.06 per share. The company noted that net income margin doubled for the recent first quarter to 1 percent from 0.5 percent.

On average, 14 analysts polled by Thomson Reuters expected the company to earn $0.68 per share. Analysts estimates usually exclude special items.

Revenue of the quarter was $3.5 billion, in line with last year. Wall Street expected the $3.50 billion.

Looking ahead, the company raised its earnings per share guidance to a range of $4.55 to $4.70, while its previous outlook was in a range of $4.35 to $4.60. For the full year 2016, Street analysts expect $4.45 per share on revenue of $14.21 billion.

Kenneth Burdick, chief executive officer said, "Our strong results in the first quarter of 2016 reflect our continued focus on business fundamentals and operational execution. All three of our lines of business improved year over year. We are pleased to increase our full-year 2016 adjusted earnings per diluted share guidance to a range of $4.55 to $4.70."