Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 
OFFON

4-Traders Homepage  >  Equities  >  Nyse  >  WellPoint Inc    WLP

SummaryChartsNewsAnalysisCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsSector newsTweets 

WellPoint, Inc. : WellPoint Sees CEO Decision Soon, Could Top 2012 View

share with twitter share with LinkedIn share with facebook
share via e-mail
0
01/08/2013 | 09:19pm CEST

--WellPoint expects decision on new CEO sometime in the first quarter

--Health insurer says 2012 earnings could be slightly above prior expectations

--Company expects to participate in exchanges in all states where it operates

(Adds comments from J.P. Morgan conference and more background throughout.)

 
   By Jon Kamp 
 

SAN FRANCISCO--Health insurer WellPoint Inc. (WLP) said Tuesday it is getting close to selecting a new chief executive and 2012 earnings may be near the high end or slightly above the company's prior expectations.

The Indianapolis-based company just wrapped up a challenging year. Former Chief Executive Angela Braly stepped down abruptly in August, a month after a rocky second-quarter report agitated investors who were already miffed about the company's unsteady performance.

WellPoint General Counsel John Cannon took over as interim CEO but also said he didn't want the top job on a permanent basis, and the health insurer's board has been searching for Ms. Braly's successor.

Speaking at the J.P. Morgan health-care conference Tuesday, Mr. Cannon said the insurance company expects to decide on a permanent CEO this quarter, "hopefully sooner rather than later."

The company gave its preliminary view of results for the just-concluded year in a regulatory filing ahead of Mr. Cannon's presentation. While WellPoint was cautious on its forecast in November--holding its adjusted earnings view of $7.30 to $7.40 a share in check despite posting a better-than-expected third quarter--the company said Tuesday that it may top that target.

Chief Financial Officer Wayne DeVeydt said in November that WellPoint was taking a conservative view amid investors' interest in seeing less volatility. But BMO Capital Markets noted Tuesday that Wall Street estimates have been drifting higher anyway.

The adjusted forecast excludes items like a tax adjustment and closing costs related to the recent purchase of Medicaid insurer Amerigroup.

Meantime, WellPoint also advised that 2013 is shaping up to be an investment year, with plans to pump $200 million to $300 million before taxes to invest in growth initiatives, such as the planned health-law exchanges and the burgeoning market for dual Medicare/Medicaid patients.

The company on Tuesday said it expects adjusted per-share earnings to "grow moderately" this year because of a lower share count amid relatively stable net income. The 2013 view includes Amerigroup integration costs.

The company closed on its $4.46 billion Amerigroup purchase two weeks ago. The deal created the largest Medicaid insurer while also lessening WellPoint's tilt toward individual and small-group commercial health insurance, which are markets expected to see the biggest impact from the U.S. health-care overhaul law.

Big features of the health law, like state-based exchanges where individuals can shop for coverage, are supposed to start up next year. Mr. Cannon said WellPoint expects to participate in exchanges in all of the states where it operates. He also said WellPoint is well-positioned for the coming changes.

"Many people fear health-care reform, and I may be smoking something, but I'm excited about it," Mr. Cannon said. "The government wants to make it work, and they need us to make it work."

--Joseph Walker and Saabira Chaudhuri contributed to this article.

Write to Jon Kamp at [email protected]

Subscribe to WSJ: http://online.wsj.com?mod=djnwires

share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on WELLPOINT INC
03:02aDJANTHEM : Pulling Back on Offering ACA Plans in Nevada - Update
06/28DJANTHEM : Pulling Back on Offering ACA Plans in Nevada
06/28 ANTHEM'S RATE INCREASES REINFORCE WH : ObamaCare is Failing and Mainers Will Suf..
06/27DJANTHEM : Senate Health Bill Raises Uninsured by 22 Million in 2026 Compared to A..
06/26DJANTHEM : Says Senate Health Bill Will Bolster Individual Insurance Market -- Upd..
06/26 THE LATEST : White House questions report on Senate bill
06/26 ANTHEM'S RATE INCREASES REINFORCE WH : Obamacare is failing and mainers will suf..
06/26 ANTHEM : More Counties Left Without Insurance in Wake of Obamacare's Continued C..
06/23DJANTHEM : Agrees to $115 Million Settlement of Data Breach Lawsuit
06/23 ANTHEM : The Indianapolis Star James Briggs column
More news
Sector news : Managed Healthcare - NEC
06/21 Cigna's 2017 growth may include Medicare Advantage acquisitions
06/20 U.S. banks, corporations establish principles for cyber risk ratings firms
06/16DJCIGNA : Can Return to Medicare Advantage, Prescription-Drug Plans -- Update
06/16DJCIGNA : Can Return to Medicare Prescription-Drug Plans
06/13DJANTHEM : Boss Faces Tough Choices in Health-Care Debate
More sector news : Managed Healthcare - NEC
Advertisement
Financials ($)
Sales 2017 88 515 M
EBIT 2017 4 913 M
Net income 2017 2 827 M
Debt 2017 -
Yield 2017 1,40%
P/E ratio 2017 17,80
P/E ratio 2018 15,12
Capi. / Sales 2017 0,56x
Capi. / Sales 2018 0,53x
Capitalization 49 661 M
More Financials
Chart WELLPOINT INC
Duration : Period :
WellPoint Inc Technical Analysis Chart | WLP | US94973V1070 | 4-Traders
Full-screen chart
Income Statement Evolution
More Financials
Consensus 
Mean consensus OUTPERFORM
Number of Analysts 20
Average target price 196 $
Spread / Average Target 4,8%
Consensus details
EPS Revisions
More Estimates Revisions
Managers
NameTitle
Joseph R. Swedish Chairman, President & Chief Executive Officer
John E. Gallina Chief Financial Officer & Executive Vice President
Craig E. Samitt Chief Clinical Officer & Executive Vice President
Ramiro G. Peru Independent Director
Julie Anne Hill Independent Director
More about the company
Sector and Competitors
1st jan.Capitalization (M$)
WELLPOINT INC39.80%49 661
UNITEDHEALTH GROUP15.35%177 892
AETNA INC22.52%50 150
ANTHEM INC30.35%49 661
CIGNA CORPORATION26.04%42 767
HUMANA INC16.19%34 213
More Results