WellPoint reaffirms 2012 earnings forecast

Published on NewsOK Modified: December 11, 2012 at 12:13 pm •  Published: December 11, 2012
Advertisement
;

INDIANAPOLIS (AP) — WellPoint Inc. is sticking with a 2012 earnings forecast that it had cut in July, and the nation's second-largest health insurer said it expects next year's earnings to be on par with this year's performance.

The Indianapolis company on Tuesday reaffirmed its forecast for 2012 adjusted earnings of $7.30 to $7.40 per share, which doesn't count investment gains and litigation or acquisition costs. That means the forecast doesn't count costs tied to its acquisition of fellow insurer Amerigroup Corp., a $4.46 billion deal WellPoint expects to close later this month.

Analysts expect, on average, earnings of $7.46 per share, according to FactSet.

WellPoint said July 25 it was cutting its outlook from a previous forecast of $7.57 per share after enduring a tough month of May and seeing enrollment slip. The insurer also reported that day second-quarter earnings that both fell and missed expectations.

CEO Angela Braly then resigned in August as investor frustration started to surface over the performance of the insurer, which runs Blue Cross Blue Shield plans in 14 states and trails only UnitedHealth Group Inc. in size.



Trending Now


AROUND THE WEB

  1. 1
    College of Charleston president orders second investigation of Doug Wojcik
  2. 2
    Joe Paterno's son Jay sues Penn State for 'improper termination'
  3. 3
    Former Dallas Cowboys running back Robert Newhouse dead at 64
  4. 4
    Oklahoma man gets consecutive 20-year terms for rapes of intellectually challenged classmates
  5. 5
    Angels won't cap former OU pitcher Garrett Richards' innings
+ show more