WellCare Health Plans
The 10-second takeaway
For the quarter ended March 31 (Q1), WellCare Health Plans beat expectations on revenues and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share expanded significantly.
Gross margins shrank, operating margins increased, net margins increased.
WellCare Health Plans reported revenue of $1.79 billion. The nine analysts polled by S&P Capital IQ expected sales of $1.73 billion on the same basis. GAAP reported sales were 21% higher than the prior-year quarter's $1.47 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 $1.32. The 11 earnings estimates compiled by S&P Capital IQ predicted $0.54 per share. GAAP EPS of $1.18 for Q1 were 136% higher than the prior-year quarter's $0.50 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 15.0%, 60 basis points worse than the prior-year quarter. Operating margin was 4.5%, 210 basis points better than the prior-year quarter. Net margin was 2.9%, 150 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $1.75 billion. On the bottom line, the average EPS estimate is $1.20.
Next year's average estimate for revenue is $7.03 billion. The average EPS estimate is $4.66.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 449 members out of 491 rating the stock outperform, and 42 members rating it underperform. Among 131 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 123 give WellCare Health Plans 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 WellCare Health Plans is outperform, with an average price target of $75.60.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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