WellCare Health Plans Q1 Profit Rises; Lifts 2017 Adj. EPS View

(RTTNews) - WellCare Health Plans Inc. (WCG) reported that its GAAP net income for the first quarter of 2017 rose to $67.3 million, or $1.50 per share, from $37.8 million, or $0.85 per share, for the first quarter of 2016.

Adjusted net income for the first quarter of 2017 was $72.0 million, or $1.61 per diluted share, compared with adjusted net income of $47.7 million, or $1.07 per diluted share, for the first quarter of 2016. The year-over-year increases in GAAP and adjusted net income are primarily the result of continued operational execution.

GAAP and adjusted total premium revenue of $3.9 billion for the first quarter of 2017 increased 11.6 percent and 13.5 percent, respectively, compared with the first quarter of 2016.

GAAP and adjusted Medicaid Health Plans premium revenue of $2.6 billion for the first quarter of 2017 increased 11.8 percent and 14.7 percent, respectively, compared with the first quarter of 2016.

Analysts polled by Thomson Reuters expected the company to report earnings of $1.18 per share and revenues of $3.86 billion for the quarter. Analysts' estimates typically exclude special items.

WellCare increased its full-year 2017 adjusted EPS guidance to a range of $6.55 to $6.80 from its previous guidance range of $6.00 to $6.25 per diluted share. This revised guidance includes the acquisitions of Universal American and certain assets of PHP. Analysts expect annual earnings of $6.69 per share.