Managed care provider WellCare Health Plans (NYSE:WCG) reported third-quarter results today after the markets closed, showing that it posted net revenues of $2.5 billion, a robust 38% increase from the same period in the previous year and well ahead of the $2.37 billion Capital IQ consensus estimate.
While adjusted net income came in at $68.9 million, or $1.56 per share, almost 50% higher from the $46.2 million, or $1.05 per share, in the same period in 2012, it was also $0.05 per share better than the CapIQ estimates of $1.51 per share.
WellCare says it benefited from increased premium revenues as membership jumped 10% in the quarter to 2.8 million, including those gained through acquisitions, compared with the same period in 2012.
The managed care provider raised its guidance for premium revenue for the full year and now expects it to be between $9.35 billion and $9.40 billion from its prior estimate of between $9.15billion and $9.25 billion, while the high end of its per share guidance for adjusted net income was lowered to a range of $4.70 and $4.80 from its previous estimates of $4.70 to $4.90. Analysts anticipate WellCare to post earnings of $4.87 per share in 2013 on revenues of $9.38 billion.
Shares of WellCare closed down more than 6%, or $4.08, to $62.60.