Stock Monitor: WellCare Health Plans Post Earnings Reporting
LONDON, UK / ACCESSWIRE / February 14, 2018 / Active-Investors.com has just released a free earnings report on Anthem, Inc. (NYSE: ANTM). If you want access to this report all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=ANTM. Anthem reported its fourth quarter and fiscal 2017 operating and financial results on January 31, 2018. The health insurer surpassed top- and bottom-line expectations and provided guidance for the fiscal year 2018. Register today and get access to over 1,000 Free Research Reports by joining our site below:
Active-Investors.com is currently working on the research report for WellCare Health Plans, Inc. (NYSE: WCG), which also belongs to the Healthcare sector as the Company Anthem. Do not miss out and become a member today for free to access this upcoming report at:
Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Anthem most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:
Earnings Highlights and Summary
Anthem's operating revenue was $22.45 billion in Q4 2017, reflecting growth of 4.5% versus revenue of $21.48 billion in Q4 2016. The growth in revenue reflected premium rate increases to cover overall cost trends across the Company's business. Additionally, the increase was driven by higher enrollment in Medicare and both Local Group insured and self-funded businesses. Anthem's reported numbers exceeded analysts' estimates by $200 million.
For full year (FY) 2017, Anthem reported operating revenue of $89.06 billion, up 5.8% compared to operating revenue of $84.19 billion in FY16.
During Q4 2017, Anthem recorded a one-time, non-cash deferred tax benefit from corporate tax reform of $1.1 billion, reducing the total income tax expense in FY17 to $121 million, an effective tax rate of 3.1%.
For Q4 2017, Anthem reported net income of $1.23 billion, or $4.67 per diluted shares, compared to $368.4 million, or $1.37 per diluted share, in Q4 2016. On an adjusted basis, the Company reported net income of $338.8 million, or $1.29 per share, versus $473.2 million, or $1.76 per diluted share, in the prior year's comparable quarter. Anthem's earnings beat Wall Street's estimates of $1.25 per share.
For FY17, Anthem recorded net income of $3.84 billion, or $14.35 per diluted shares, compared to $2.47 billion, or $9.21 per diluted share, in FY16. On an adjusted basis, the Company posted net income of $3.22 billion, or $12.04 per share, compared to $2.95 billion, or $11.00 per diluted share, in FY16.
Anthem's Medical enrollment totaled approximately 40.2 million members at December 31, 2017, an increase of 0.8% from 39.9 million members at December 31, 2016. Commercial & Specialty Business enrollment increased by 278,000 medical members on a y-o-y basis, as the Company experienced growth in both self-funded and fully-insured Local Group businesses. Enrollment also grew by 47,000 in the Government business.
During Q4 2017, Anthem's Medical enrollment declined by 13,000 lives sequentially, reflecting enrollment declines in the Individual business, partially offset by growth in the Medicare, Medicaid, and Local Group self-funded businesses.
Anthem's benefit expense ratio was 88.6% in Q4 2017, reflecting an increase of 140 basis points from 87.2% in Q4 2016. The increase was principally driven by the impact of the one-year waiver of the health insurance tax in 2017.
Anthem's Days in Claims Payable (DCP) was 39.4 days as of December 31, 2017, representing a decrease of 1.1 days from 40.5 days as of September 30, 2017.
During Q4 2017, Anthem's operating gain in the Commercial & Specialty Business segment totaled $71.2 million, down 62.4% from $189.2 million in Q4 2016. The decrease was driven by increased investment spending to support growth initiatives and the impact of the one-year waiver of the health insurance tax in 2017.
Anthem's operating gain in the Government Business segment was $360.8 million in Q4 2017, reflecting a decrease of 31.9%, from $529.9 million in Q4 2016. The decrease reflects increased investment spend to support growth initiatives and the impact of the one-year waiver of the health insurance tax in 2017.
During Q4 2017, Anthem's operating cash outflow was $1.3 billion, bringing FY17 operating cash flow to $4.2 billion, or 1.1 times net income.
During Q4 2017, the Company repurchased 1.8 million shares of its common stock for $362 million, or a weighted-average price of $205.41. During FY17, Anthem repurchased 10.5 million shares of its common stock for $2.0 billion, or a weighted average price of $189.93. As of December 31, 2017, the Company had approximately $7.2 billion of Board-approved share repurchase authorization remaining.
For full year 2018, Anthem is forecasting net income to be greater than $14.28 per share, including approximately $0.72 per share of net unfavorable items. The Company's adjusted net income is expected to be greater than $15.00 per share.
For FY18, Anthem is projecting Medical membership to be in the range of 40.00 million to 40.20 million, fully insured membership is expected to be in the band of 14.80 million to 14.90 million and self-funded membership is expected to be in the range of 25.20 million to 25.30 million.
Anthem is estimating operating revenue to be in the range of $90.5 billion to $91.5 billion for FY18. The Company is anticipating benefit expense ratio to be 84.5% plus or minus 30 basis points and operating cash flow is expected to be greater than $4.0 billion.
Stock Performance Snapshot
February 13, 2018 - At Tuesday's closing bell, Anthem's stock marginally rose 0.29%, ending the trading session at $233.45.
Volume traded for the day: 1.39 million shares.
Stock performance in the last three-month – up 6.95%; previous six-month period – up 22.03%; past twelve-month period – up 42.77%; and year-to-date – up 3.75%
After yesterday's close, Anthem's market cap was at $60.81 billion.
Price to Earnings (P/E) ratio was at 16.25.
The stock has a dividend yield of 1.29%.
The stock is part of the Healthcare sector, categorized under the Health Care Plans industry. This sector was up 0.1% at the end of the session.
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