WellPoint’s Second-Quarter Profits Fall
The nation's second-largest insurer reported earnings that were below expectations this week, citing job cuts that reduced the number of people covered by employer-sponsored health plans as part of the reason for the company's performance.
Los Angeles Times: Health Insurer WellPoint Cuts Profit Forecast And Shares Slide
WellPoint, which runs Anthem Blue Cross in California and health plans in 13 other states, lowered its 2012 adjusted earnings forecast to a range $7.30 to $7.40 a share, down from $7.57 a share. The consensus estimate of analysts was for $7.76 a share, according to FactSet. In contrast, rival UnitedHealth Group Inc. raised its full-year profit estimate when it reported second-quarter results last week (Terhune, 7/25).
The Associated Press: WellPoint Cuts Outlook As 2Q Profit Falls 8.3 Pct
WellPoint Inc., the nation's second-largest health insurer, surprised Wall Street on Wednesday by cutting its 2012 forecast and reporting second-quarter earnings that both fell and missed expectations. … The insurer said it lowered earnings expectations after enduring a rough month of May and seeing enrollment slip. That fall was largely due to job cuts, which reduce the number of people covered by employer-sponsored health insurance (Murphy, 7/25).
Reuters: WellPoint Cuts Forecast As Quarterly Profit Misses View
WellPoint Inc's quarterly profit missed analysts' estimates and the health insurer cut its full-year profit forecast on Wednesday on rising medical costs and lower membership, sending its shares and those of its rivals down sharply. WellPoint executives said they were refusing to cut prices that could hurt profit margins in the face of competitive pressure among health plans, leading to lower enrollment (Krauskopf, 7/25).
Market Watch: WellPoint Disappoints; Sector Gets Pummeled
Lower-than-expected earnings and a reduced outlook for WellPoint Inc. took a big bite out of the health insurance giant's shares Wednesday, and the company’s forecast sent a shiver up the spine of the managed-care sector. … WellPoint said it's seeing decreased membership numbers, as the number of those in its medical programs dropped by 126,000 during the quarter and was down 639,000 over the last 12 months. The company said it also is getting hit by higher medical costs (Britt, 7/25).
The Wall Street Journal: Wellpoint Hit Hard But Supports CEO
In the wake of disappointing earnings that dinged the stock and sharpened questions about the company's direction, WellPoint Inc.'s board made an unusual statement of support for the insurer's leadership under CEO Angela Braly (Mathews and Kamp, 7/25).