The 10-second takeaway
For the quarter ended Dec. 31 (Q4), WellPoint met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew slightly and GAAP earnings per share expanded significantly.
Gross margins increased, operating margins contracted, net margins grew.
WellPoint logged revenue of $15.27 billion. The 16 analysts polled by S&P Capital IQ hoped for revenue of $15.30 billion on the same basis. GAAP reported sales were 1.4% higher than the prior-year quarter's $15.32 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $1.03. The 20 earnings estimates compiled by S&P Capital IQ forecast $0.94 per share. GAAP EPS of $1.51 for Q4 were 57% higher than the prior-year quarter's $0.96 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 20.4%, 160 basis points better than the prior-year quarter. Operating margin was 4.1%, 10 basis points worse than the prior-year quarter. Net margin was 3.0%, 80 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $17.60 billion. On the bottom line, the average EPS estimate is $2.38.
Next year's average estimate for revenue is $70.82 billion. The average EPS estimate is $7.93.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 952 members out of 1,008 rating the stock outperform, and 56 members rating it underperform. Among 342 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 334 give WellPoint a green thumbs-up, and eight give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on WellPoint is outperform, with an average price target of $69.88.
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