WellCare Posts $241M in Net Income, Revenues Grow Again

Stocks for both WellCare and Centene jumped on news of the positive earnings report during the early trading session.

WellCare Health Plans reported $241 million in net income and $7.1 billion in total revenues during Q3, according to the company's latest round of earnings released Wednesday.

Both metrics represented year-over-year statistical increases for the Tampa-based insurer, which is entering the final stages of its $17.3 billion merger with St. Louis-based Centene Corporation. 

Related: WellCare Revenues Top $7B as Centene Merger Progresses

One of the largest financial improvements for WellCare was its earnings per diluted share (EPS), which totaled $4.74 in Q3, well above the $2.70 per share posted in Q3 2018. Similarly, the company's adjusted EPS was $5.50 per share, eclipsing the $3.30 per share posted this time last year.

For yet another quarter, WellCare benefited from strong performance in its Medicare and Medicaid segments, which grew by $1.6 billion and $26 million year-over-year, respectively.

C-SUITE PERSPECTIVE: 

"We are pleased with our strong revenue and earnings growth this quarter," Ken Burdick, CEO of WellCare, said in a statement. "All three business segments continue to contribute to our strong financial performance, driven by a combination of organic and acquired growth, as well as continued focus on financial and operational execution by our WellCare associates."

As has been the case since this spring, most of the focus at WellCare during Q3 centered on the pending merger with Centene, which has received regulatory approval from 25 states. 

Due to the pending Centene merger, WellCare is not providing an updated financial guidance for the rest of 2019.

Related: More State Insurance Departments Approve Centene-WellCare Merger

The company's Medicaid membership again held flat quarter-to-quarter at 4.1 million, but marked an increase of 181,000 members year-over-year.

Meanwhile, its Medicare membership topped 560,000 members, representing an increase of 3.5% compared to Q3 2018.

Related: Centene Posts Nearly $19B in Revenues as N.Y. Approves WellCare Merger

Stocks for both WellCare and Centene jumped on news of the positive earnings report during the early trading session.

ADDITIONAL WELLCARE Q3 EARNINGS REPORT HIGHLIGHTS:

• The company's Medicare prescription drug plans membership grew to 1.7 million, a year-over-year increase of nearly than 640,000 members.
• The segment's revenue also grew by 32.3%, totaling $241.2 million.
• At the end of Q3, WellCare had $433.9 million in unregulated cash and investments, down from $462.6 million in Q3 2018.

For complete financial information, review WellCare's filing with the Securities and Exchange Commission.