WellCare Health Q3 Profit Rises, Results Top Estimates; Updates FY13 Outlook

(RTTNews) - WellCare Health Plans Inc. (WCG) reported that its net income for the third quarter of 2013 was $63.99 million or $1.45 per share, up from $38.29 million, or $0.87 per share, for the third quarter of 2012.

Adjusted net income for the third quarter of 2013 was $68.9 million or $1.56 per share, compared with $46.2 million, or $1.05 per share, for the third quarter of 2012. Analysts polled by Thomson Reuters expected the company to report earnings of $1.52 per share for the quarter. Analysts' estimates typically exclude special items.

Adjusted net income per share for the third quarter of 2013 increased $0.51 compared with the same period in 2012, primarily due to increased premium revenue, offset in part by the increase in the Company medical benefits ratio or MBR.

Premium revenue for the third quarter of 2013 increased 38% year over year to $2.5 billion, driven by a 71% increase in Medicare Advantage segment premium revenue and a 37% increase in Medicaid segment premium revenue.

Total revenues for the quarter improved to $2.50 billion from $1.82 billion in the prior year quarter. Ten analysts had consensus revenue estimate of $2.37 billion for the quarter.

For the year ending December 31, 2013, Adjusted net income per share is expected to be between approximately $4.70 and $4.80. The previous guidance was for adjusted net income per share of between $4.70 and $4.90. The change in range results mainly from the incorporation into the guidance of the Company's third quarter results, as well as from anticipated fourth quarter 2013 SG&A expenses associated with the implementation of the Florida MMA program and acquisition integration.

Annual Premium revenue in total is expected to be between $9.35 and $9.40 billion. The previous guidance was for premium revenue to be between $9.15 and $9.25 billion.

Street currently is looking for full-year 2013 earnings of $4.91 per share on annual revenues of $9.35 billion.