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.