WellPoint
The 10-second takeaway
For the quarter ended Sep. 30 (Q3), WellPoint met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue was unchanged and GAAP earnings per share expanded.
Margins grew across the board.
Revenue details
WellPoint chalked up revenue of $15.13 billion. The 15 analysts polled by S&P Capital IQ anticipated a top line of $15.31 billion on the same basis. GAAP reported sales were 0.3% lower than the prior-year quarter's $15.40 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS details
EPS came in at $2.09. The 18 earnings estimates compiled by S&P Capital IQ predicted $1.84 per share. GAAP EPS of $2.15 for Q3 were 13% higher than the prior-year quarter's $1.90 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
Margin details
For the quarter, gross margin was 21.9%, 20 basis points better than the prior-year quarter. Operating margin was 7.6%, 10 basis points better than the prior-year quarter. Net margin was 4.5%, 10 basis points better than the prior-year quarter.
Looking ahead
Next quarter's average estimate for revenue is $15.33 billion. On the bottom line, the average EPS estimate is $1.12.
Next year's average estimate for revenue is $61.07 billion. The average EPS estimate is $7.34.
Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 943 members out of 1,001 rating the stock outperform, and 58 members rating it underperform. Among 311 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 304 give WellPoint a green thumbs-up, and seven 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 $71.00.
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