I have to hand it to investors in managed-care provider WellCare Health Plans (NYSE:WCG) who have held on to their shares amid downgrades, insider selling, and rumblings among analysts that shares might be overvalued, having appreciated 98% in the 52 weeks before the company announced its earnings last Thursday. Investors have certainly been rewarded: The company reported a lights-out Q2 that included a 136% year-over-year increase in earnings per share and a 57% jump in total revenues.

Once again, the company beat its own forecasts as well as Wall Street's earnings estimates for the quarter. Normally, I would say a company that beats estimates as consistently as WellCare does is sandbagging on its forecasts. However, when revenue, earnings, and membership continue to grow at such a stifling rate, how could one be expected to accurately predict a 136% increase in EPS?

Earnings were aided in the second quarter by a 14% growth in membership versus the year-ago quarter, as well as strong gains by the company's Medicare Advantage business and its Georgia Medicaid health plan. The managed-care industry as a whole has continued to perform quite well: Amerigroup (NYSE:AGP), Centene (NYSE:CNC), and Molina Healthcare (NYSE:MOH) each reported double-digit growth in premium revenue in recent weeks.

I don't see this stock being tripped up anytime soon. WellCare continues to effectively manage its expenses and medical benefits ratio. Management once again issued a revised full-year earnings forecast that is approximately 7% above the guidance issued three months ago. I would not be at all surprised to see this guidance change once again -- in a positive direction, three months from now.

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Fool contributor Billy Fisher does not own shares of any of the companies mentioned.