WellCare Health Plans Beats on the Top Line

WellCare Health Plans (NYSE: WCG  ) reported earnings on Feb. 13. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), WellCare Health Plans beat expectations on revenues and met expectations on earnings per share.

Compared to the prior-year quarter, revenue increased significantly and GAAP earnings per share dropped significantly.

Margins shrank across the board.

Revenue details
WellCare Health Plans recorded revenue of $1.99 billion. The eight analysts polled by S&P Capital IQ expected to see revenue of $1.89 billion on the same basis. GAAP reported sales were 23% higher than the prior-year quarter's $1.60 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 $1.32. The 11 earnings estimates compiled by S&P Capital IQ averaged $1.32 per share. GAAP EPS of $1.11 for Q4 were 43% lower than the prior-year quarter's $1.96 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 14.3%, 780 basis points worse than the prior-year quarter. Operating margin was 4.0%, 360 basis points worse than the prior-year quarter. Net margin was 2.5%, 280 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $2.11 billion. On the bottom line, the average EPS estimate is $0.82.

Next year's average estimate for revenue is $8.45 billion. The average EPS estimate is $4.90.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 447 members out of 489 rating the stock outperform, and 42 members rating it underperform. Among 137 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 131 give WellCare Health Plans a green thumbs-up, and six 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 $63.30.

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