Stock Monitor: Humana Post Earnings Reporting

LONDON, UK / ACCESSWIRE / December 08, 2017 / Active-Investors free earnings report on WellCare Health Plans, Inc. (NYSE: WCG) ("WellCare") has freshly been issued to its members, and you can also sign up to view this report at www.active-investors.com/registration-sg/?symbol=WCG. The Company reported its third quarter fiscal 2017 operating results on October 31, 2017. The Medicare and Medicaid Coverage provider surpassed earnings estimates and raised its net income forecasts for FY17. Register today and get free access to our complimentary member's area where many more reports are available:

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Active-Investors.com is currently working on the research report for Humana Inc. (NYSE: HUM), which also belongs to the Healthcare sector as the Company WellCare Health Plans. Do not miss out and become a member today for free to access this upcoming report at:

www.active-investors.com/registration-sg/?symbol=HUM

Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, WellCare Health Plans most recent news is on our radar and we have decided to include it on our blog post. Today's free coverage is available at:

www.active-investors.com/registration-sg/?symbol=WCG

Earnings Highlights and Summary

For the three months ended September 30, 2017, WellCare's total revenue came in at $4.40 billion, up 23% compared to $3.58 billion in Q3 2016. The Company's revenue numbers fell short of analysts' estimates of $4.41 billion.

During Q3 2017, WellCare's GAAP and adjusted total premium revenue of $4.39 billion increased 22.7% and 25.2%, respectively, on a y-o-y basis, primarily due to the Company's acquisitions of Universal American and Care1st Arizona, and an organic growth across all its three lines of business.

For Q3 2017, WellCare's GAAP selling, general, and administrative expenses (SG&A) were $372.3 million compared to $268.5 million in Q3 2016. The Company's GAAP SG&A ratio was 8.5% for the reported quarter versus 7.5% for the year-ago comparable period. The y-o-y increase was primarily attributed to the Company's acquisitions of Universal American and Care1st Arizona, as well as staffing and infrastructure costs to support organic growth.

WellCare's GAAP net income was $171.6 million, or $3.82 per diluted share, for Q3 2017 compared to $68.6 million, or $1.54 per diluted share, for Q3 2016.

The Company's adjusted net income was $183.6 million, or $4.08 per diluted share, for the reported quarter compared to $72.8 million, or $1.63 per diluted share, for the year-earlier same quarter, beating Wall Street's estimates of $1.90 per share. The y-o-y growth in GAAP and adjusted net income were primarily the result of organic growth, the Company's aforementioned acquisitions, and continued operational executions across all three lines of business.

Segment Results

WellCare's Medicaid Health Plans membership was 2.7 million as of September 30, 2017, increasing by 290,000 members, or 12.0% on a y-o-y basis, primarily as a result of the addition of the Company's new Medicaid businesses in Arizona and Nebraska, and new members from the statewide expansion of the Missouri Medicaid program.

For Q3 2017, GAAP and adjusted Medicaid Health Plans premium revenue was $2.7 billion, reflecting growths of 11.4% and 14.7%, respectively, on a y-o-y basis. During Q3 2017, GAAP Medicaid Health Plans Medical Benefits Ratios (MBR) were 86.0% compared to 87.4% for Q3 2016. The adjusted Medicaid Health Plans MBR were 86.9% for the reported quarter compared to 90.9% for the year-earlier corresponding quarter. The decreases in the GAAP and adjusted Medicaid MBRs were primarily the result of continued operational executions and the effect of the previously mentioned Florida Medicaid retroactive premium revenue recognized in Q3 2017.

WellCare's Medicare Health Plans membership was 492,000 members as of September 30, 2017, surging by 154,000 members, or 45.6%, compared to September 30, 2016, primarily due to the Company's acquisition of Universal American, 2017 bid positioning, and continued executions on sales and retention initiatives.

For Q3 2017, Medicare Health Plans premium revenue was $1.5 billion, increasing 52.9% on a y-o-y basis, due to the Company's acquisition of Universal American and a y-o-y organic membership growth. The Medicare Health Plans MBR were 85.7% for the reported quarter versus 83.6% for the prior year's comparable quarter.

WellCare's Medicare Prescription Drug Plans (PDP) membership was 1.1 million as of September 30, 2017, increasing by 129,000 members, or 12.7%, compared to September 30, 2016, primarily due to the Company's 2017 bid positioning.

Medicare PDP premium revenue was $201.9 million for Q3 2017, growing 14.8% on a y-o-y basis. The Medicare PDP segment MBR were 70.7% for the reported quarter compared to 58.8% for the year ago same period, increasing primarily as a result of the Company's 2017 bid strategy.

Cash Matters

WellCare's net cash provided by operating activities was $910.6 million for Q3 2017 compared to $1.1 billion for Q3 2016.

As of September 30, 2017, the Company's unregulated cash and investments were approximately $582.2 million compared to $888.1 million as of September 30, 2016. Sequentially, unregulated cash and investment increased $283.6 million from $298.6 million as of June 30, 2017, primarily as a result of dividends received from certain regulated subsidiaries during the third quarter of 2017.

WellCare's days in claims payable (DCP) was 51.0 days as of September 30, 2017, compared to 49.2 days as of September 30, 2016.

2017 Financial Outlook

WellCare raised its adjusted EPS guidance to a range of $8.25 to $8.40 for the full fiscal year 2017 from its previous guidance range of $6.75 to $6.95 per diluted share.

Stock Performance Snapshot

December 07, 2017 - At Thursday's closing bell, WellCare Health Plans' stock was marginally up 0.77%, ending the trading session at $209.07.

Volume traded for the day: 339.30 thousand shares.

Stock performance in the last month ? up 3.30%; previous three-month period ? up 21.41%; past twelve-month period ? up 49.68%; and year-to-date ? up 52.52%

After yesterday's close, WellCare Health Plans' market cap was at $9.31 billion.

Price to Earnings (P/E) ratio was at 26.24.

The stock is part of the Healthcare sector, categorized under the Health Care Plans industry. This sector was up 0.3% at the end of the session.

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