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WellPoint Inc q4 net study today

best insurance stock - WellPoint Inc q4 earnings study today, WellPoint cyberspace turn a profit study today january 23 2012 : WellPoint Inc q4 earnings reported today WellPoint Inc reported a higher-than-expected fourth-quarter turn a profit on Wed equally it kept medical costs down, but the second-largest U.S.A. wellness insurer said it was taking a "prudent" persuasion of 2013 inward the human face upwards of manufacture reform.

WellPoint, which sells private health insurance to businesses as well as individuals as well as also provides authorities insurance for the elderly as well as the poor, is preparing for a circular of changes resulting from the U.S.A. Affordable Care Act.

Later this year, states as well as the federal authorities volition commence selling wellness insurance on exchanges for 2014, as well as novel insurance taxes are on the way. Pressure on prices for medical services is also a concern for insurers.

WellPoint said that given the "fluid as well as dynamic" marketplace over the adjacent xviii to 24 months, it expected a 2013 net turn a profit of at to the lowest degree $7.60 per share, including the costs of integrating its recent acquisition of smaller competitor Amerigroup.

Analysts on average accept been expecting $7.98 a share, according to Thomson Reuters I/B/E/S. It was non at nowadays clear if the 2 numbers are comparable.

"It's lighter than nosotros thought, but it's also including Amerigroup's integration costs," Leerink Swann analyst Jason Gurda said, then it was non clear that investors would hold out disappointed yesteryear the outlook.

Shares of WellPoint were downward 0.4 per centum at $63.54 inward early on trading.

Management changes mightiness hold out behind the conservative forecast, Gurda said. WellPoint is beingness run yesteryear an interim principal executive officer, John Cannon, who took over next the acute resignation of Angela Braly inward August.

Chief Financial Officer Wayne DeVeydt told analysts on a conference telephone phone on Wed that the fellowship nevertheless expected to mention a novel CEO this quarter.

He said the 2013 outlook included twenty cents to 25 cents a portion inward Amerigroup-related costs as well as $300 meg inward additional investments such equally grooming for the wellness insurance exchanges.

Besides healthcare reform as well as broad-based cuts inward authorities medical payments, areas of dubiety for this twelvemonth include the costs of the influenza equally to a greater extent than members watch the Dr. as well as overall purpose of medical services, DeVeydt said.

TAXES BOOST PROFIT

The fellowship said that fourth-quarter cyberspace turn a profit had risen to $464.2 million, or $1.51 per share, helped yesteryear an income taxation short town as well as investment gains.

WellPoint, which included Amerigroup figures inward its earnings report for the outset time, said it had 36.1 meg members equally of Dec. 31, upwards 5.5 per centum from a twelvemonth earlier.

It said it expected membership to drib inward 2013 to a gain of 35.3 meg to 35.5 million.

Excluding the taxation settlement, investment gains as well as other particular items, the fellowship said earnings had increased to $1.03 per portion from 99 cents a twelvemonth earlier.

On that basis, analysts on average had been expecting a turn a profit of 95 cents per share, according to Thomson Reuters I/B/E/S.

WellPoint said that lower-than-anticipated medical costs inward its private insurance business, stable membership numbers as well as strong operating cash period of time helped earnings during the quarter. It said its fourth-quarter taxation charge per unit of measurement had been abnormally depression because of the short town alongside the Internal Revenue Service.

Revenue for the quarter rose to $15.27 billion from $15.18 billion a twelvemonth earlier.

WellPoint's results followed those of the larger competition UnitedHealth Group Inc, which final calendar week reported a slight drib inward cyberspace income as well as said the adjacent 2 years had the potential for growth as well as opportunity.

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