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S&P 500 (NYSE:SPY) component WellPoint (NYSE:WLP) will unveil its latest earnings on Wednesday, July 25, 2012. WellPoint is a health benefits company which offers a spectrum of network-based managed care plans to employers, individuals, and seniors.
WellPoint Earnings Preview Cheat Sheet
Wall St. Earnings Expectations: The average analyst estimate is for net income of $2.05 per share, a rise of 12% from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved down from $2.08. Between one and three months ago, the average estimate was unchanged. It has since dropped over the last month. Analysts are projecting profit to rise by 10.4% versus last year to $7.73.
Last quarter, the company came in at profit of $2.34 per share against a mean estimate of net income of $2.28 per share, beating estimates after missing them in the previous quarter. In the fourth quarter of the last fiscal year, it missed forecasts by 12 cents.
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Stock Price Performance: Between June 20, 2012 and July 19, 2012, the stock price dropped $8.16 (-11.5%), from $70.86 to $62.70. The stock price saw one of its best stretches over the last year between December 30, 2011 and January 11, 2012, when shares rose for eight straight days, increasing 9.5% (+$6.32) over that span. It saw one of its worst periods between July 21, 2011 and August 2, 2011 when shares fell for nine straight days, dropping 14.3% (-$10.71) over that span.
A Look Back: In the first quarter, profit fell 7.6% to $856.5 million ($2.53 a share) from $926.6 million ($2.44 a share) the year earlier, but exceeded analyst expectations. Revenue rose 3.5% to $15.42 billion from $14.89 billion.
Wall St. Revenue Expectations: Analysts are projecting a rise of 2.6% in revenue from the year-earlier quarter to $15.27 billion.
On the top line, the company is looking to build on four-straight revenue increases heading into this earnings announcement. Revenue rose 4.5% in the second quarter of the last fiscal year, 5.5% in the third quarter of the last fiscal year and 4.6% in the fourth quarter of the last fiscal year before increasing again in the first quarter.
The company is trying to stem some negative momentum heading into this earnings announcement. Profit has dropped by a year-over-year average of 14.2% over the past four quarters.
Analyst Ratings: With 10 analysts rating the stock a buy, none rating it a sell and eight rating the stock a hold, there are indications of a bullish stance by analysts.
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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)
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