WellCare Health Q3 Profit Climbs, Lifts FY17 Adj. EPS View Above Market

(RTTNews) - WellCare Health Plans, Inc. (WCG) reported Tuesday that its third-quarter net income was $171.6 million or $3.82 per share, significantly higher than last year's $68.6 million or $1.54 per share.

Adjusted net income was $183.6 million, or $4.08 per share, compared to adjusted net income of $72.8 million, or $1.63 per share in 2016.

Total premium revenue increased to $4.39 billion from prior year's $3.58 billion. Adjusted premium revenue was $4.36 billion, compared to $3.48 billion a year ago.

On average, analysts polled by Thomson Reuters expected earnings of $1.91 per share on revenues of $4.36 billion for the quarter. Analysts' estimates typically exclude special items.

Ken Burdick, WellCare's chief executive officer, noted that All three business segments produced premium revenue and membership growth, driven by organic growth and acquisitions.

Citing the strong third quarter performance and outlook for the remainder of this year, the company raised its full-year 2017 adjusted earnings per share guidance to a range of $8.25 to $8.40 from previous guidance range of $6.75 to $6.95 per share. Analysts expect earnings of $7.01 per share.