Excerpt from: WellPoint Net Rises in First Results Since Braly’s Exit (click for full article)
WellPoint Inc. (WLP), the second-biggest U.S. health insurer, said profit rose 1.2 percent, in its first earnings report since former chief executive officer Angela Braly left amid complaints about the company’s performance.
Net income increased to $691.2 million, or $2.15 a share, in the third quarter, from $683.2 million, or $1.90, a year earlier, the Indianapolis-based carrier said in a statement today. Earnings excluding one-time items topped by 26 cents the $1.83 average of 15 analyst estimates compiled by Bloomberg.
Braly resigned Aug. 28 amid investor unrest about disappointing profits and a stock that lagged behind competitors like UnitedHealth Group Inc. (UNH), the biggest health plan. The company nonetheless benefited in the quarter from acquisitions she orchestrated, gaining revenue from its new eye wear retailer 1-800-Contacts and new members from CareMore Health Group, an insurer for elderly Medicare patients.
“It looks very much like the CareMore deal, as well as 1-800 Contacts, continue to support earnings,” said Thomas A. Carroll, a Stifel Nicolaus & Co. analyst in Baltimore, in a phone interview. “And that comes against the backdrop of medical cost trends that remain relatively stable.
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