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Are You Expecting This from WellCare Health Plans?

Monday - 4/29/2013, 2:00am  ET

WellCare Health Plans is expected to report Q1 earnings around May 3. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict WellCare Health Plans's revenues will expand 21.4% and EPS will decrease -47.7%.

The average estimate for revenue is $2.17 billion. On the bottom line, the average EPS estimate is $0.69.

Revenue details
Last quarter, WellCare Health Plans chalked up revenue of $1.99 billion. GAAP reported sales were 24% higher than the prior-year quarter's $1.60 billion.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Last quarter, non-GAAP EPS came in at $1.32. GAAP EPS of $1.11 for Q4 were 43% lower than the prior-year quarter's $1.96 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Recent performance
For the preceding quarter, gross margin was 15.2%, 560 basis points worse than the prior-year quarter. Operating margin was 3.9%, 370 basis points worse than the prior-year quarter. Net margin was 2.5%, 280 basis points worse than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $8.96 billion. The average EPS estimate is $4.87.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 439 members out of 481 rating the stock outperform, and 42 members rating it underperform. Among 129 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 121 give WellCare Health Plans a green thumbs-up, and eight give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on WellCare Health Plans is outperform, with an average price target of $63.30.

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This article was originally published as Are You Expecting This from WellCare Health Plans?on Fool.com

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