Research Desk Line-up: WellCare Health Plans Post Earnings Coverage

LONDON, UK / ACCESSWIRE / November 10, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on Anthem, Inc. (NYSE: ANTM), which can be viewed by registering at http://protraderdaily.com/optin/?symbol=ANTM, following the Company's posting of its third quarter fiscal 2017 operating results on October 25, 2017. The United States' second-largest health insurer surpassed earnings estimates and also raised its adjusted earnings forecast for FY17. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member's account at:

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Get more of our free earnings reports coverage from other constituents of the Health Care Plans industry. Pro-TD has currently selected WellCare Health Plans, Inc. (NYSE: WCG) for due-diligence and potential coverage as the Company reported on October 31, 2017, its financial results for Q3 2017 which ended on September 30, 2017. Register for a free membership today, and be among the early birds that get access to our report on WellCare Health Plans when we publish it.

At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on ANTM; also brushing on WCG. With the links below you can directly download the report of your stock of interest free of charge at:

http://protraderdaily.com/optin/?symbol=ANTM

http://protraderdaily.com/optin/?symbol=WCG

Earnings Reviewed

Anthem's operating revenue totaled $22.1 billion for Q3 2017, up 4.6% versus operating revenue of $21.1 billion in Q3 2016. The growth in revenue reflected premium rate increases to cover overall cost trends across the Company's business. Anthem's revenue fell short of analysts' estimates of $22.43 billion.

Anthem reported net income of $746.9 million, or $2.80 per share, in Q3 2017 compared to net income of $617.8 million, or $2.30 per share, in Q3 2016. The Company's reported quarter results included net positive adjustment items of $0.15 per share, while for the year-ago corresponding period it included net negative adjustment items of $0.15 per share.

Excluding the items noted in each period, Anthem's adjusted net income was $2.65 per share in Q3 2017 compared to the adjusted net income of $2.45 per share in Q3 2016. The Company's earnings beat Wall Street's expectation of $2.41 per share.

Operating Results

Anthem's medical enrollment totaled approximately 40.3 million members at September 30, 2017, an increase of 347,000 members, or 0.9%, from 39.9 million, at September 30, 2016. The Company's Commercial & Specialty Business enrollment increased by 278,000 medical members as the Company experienced growth in both self-funded and fully-insured Local Group businesses. Anthem's enrollment also grew by 61,000 in the Medicare business and 16,000 in the Medicaid business.

Anthem's benefit expense ratio was 87.0% in Q3 2017, reflecting an increase of 150 basis points from 85.5% in Q3 2016, largely driven by the impact of the one-year waiver of the health insurance tax in 2017. The increase was partially offset by the impact of a retroactive revenue adjustment in the Medicaid business and improved medical cost performance in the Individual and Large Group businesses.

Anthem's Days in Claims Payable (DCP) were 40.5 days as of September 30, 2017, unchanged from 40.5 days as of June 30, 2017.

The Company's selling, general, and administrative (SG&A) expense ratio was 13.6% in Q3 2017, reflecting decline of 120 basis points from 14.8% in Q3 2016, primarily driven by the impact of the one-year waiver of the health insurance tax in 2017 and the impact of fixed cost leverage on operating revenue growth.

Segment Results

During Q3 2017, Anthem's operating gain in the Commercial & Specialty Business segment totaled $534.6 million, down 16.2% from $637.7 million in Q3 2016, driven by increased spend to support growth initiatives during the current year quarter and the impact of the one-year waiver of the health insurance tax in 2017.

For Q3 2017, Anthem's operating gain in the Government Business segment totaled $457.5 million, down 4.5% from $478.9 million in Q3 2016, reflecting increased spend to support growth initiatives during the reported quarter and the impact of the one-year waiver of the health insurance tax in 2017.

Cash Matters

Anthem's operating cash flow was $2.4 billion, or 3.2 times net income, in Q3 2017, and approximately $5.5 billion, or 2.1 times net income, for the first nine months of 2017. The Company now expects its FY17 operating cash flow to be greater than $4.0 billion.

During Q3 2017, the Company repurchased 5.9 million shares of its common stock for $1.1 billion, or a weighted-average price of $189.85. As of September 30, 2017, Anthem had approximately $2.5 billion of Board-approved share repurchase authorization remaining.

On October 24, 2017, Anthem's Audit Committee declared Q4 2017 dividend to shareholders of $0.70 per share. The fourth quarter dividend is payable on December 21, 2017, to shareholders of record at the close of business on December 05, 2017.

As of September 30, 2017, Anthem's net unrealized gain position in the investment portfolio was $860.8 million, consisting of net unrealized gains on equity and fixed maturity securities totaling $423.9 million and $436.9 million, respectively. As of September 30, 2017, cash and investments at the parent Company totaled approximately $2.0 billion.

Outlook

For FY17, Anthem is forecasting net income to be in the range of $10.80 to $10.90 per share, including approximately $1.10 per share of net unfavorable items. Excluding these items, adjusted net income is now expected to be in the range of $11.90 to $12.00 per share.

For FY17, Anthem is projecting operating revenue to be in the range of $88.5 million to $89.5 billion. The Company is anticipating benefit expense ratio to be in the range of 86.8%, plus or minus 30 basis points, while SG&A ratio is now expected to be in the range of 13.8%, plus or minus 30 basis points.

Stock Performance

At the closing bell, on Thursday, November 09, 2017, Anthem's stock slightly slipped 0.41%, ending the trading session at $215.98. A total volume of 916.41 thousand shares have exchanged hands. The Company's stock price skyrocketed 14.02% in the last three months, 19.04% in the past six months, and 67.75% in the previous twelve months. Moreover, the stock soared 50.23% since the start of the year. The stock is trading at a PE ratio of 19.52 and has a dividend yield of 1.30%. The stock currently has a market cap of $56.26 billion.

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SOURCE: Pro-Trader Daily