WellCare's total revenue exceeded $5 billion in Q3, and though its EPS dropped, the insurer improved its year-end financial outlook.
Tampa-based WellCare produced just over $5 billion in total revenue and $130 million in net income during Q3, while boosting its financial guidance for the end of 2018, according to its quartely earnings report released Tuesday morning.
WellCare's total premium revenue increased 14.9% compared to Q3 2017, driven by sustained performance from $3.2 billion in Medicaid Health Plans revenue, an 18.4% increase year-over-year.
The insurer did witness its GAAP earnings per diluted share (EPS) fall from $3.82 in Q3 2017 to $2.70 in Q3, along with its adjusted EPS slipping from $4.08 to $3.33 over the same period of time. However, the company is raising its adjusted EPS forecast to the range of $10.90 to $11, up from the range of $10.70 to $10.90 in Q2.
"We delivered strong operating and financial results in the third quarter," Ken Burdick, CEO of WellCare, said in a statement. "With the recent closing of the Meridian acquisition and our Medicaid contract wins in Florida and Arizona, we are excited about our substantial growth outlook as we move through the end of the year and into 2019."
WellCare experienced several significant developments during Q3, most notably purchasing Aetna's Medicare Part D plans as the insurer merges with CVS Health and welcoming former Louisiana Gov. Bobby Jindal to its board in September.
ADDITIONAL WellCare Q3 EARNINGS REPORT HIGHLIGHTS:
WellCare closed on its announced $2.1 billion acquisition of Meridian Health Plan on September 1.
The insurer's net income margin dropped from 3.9% in Q3 2017 to 2.6% in Q3.
The Medicare health plans revenues totalled $1.58 billion in Q3, an increase of $120,000 compared to this time last year.
By the end of Q2, WellCare had $462.6 million in unregulated cash and investments, down from $514.8 million in Q2.
For complete financial information, review WellCare's filing with the Securities and Exchange Commission.
Jack O'Brien is the finance editor at HealthLeaders, a Simplify Compliance brand.
WellCare produced $5 billion in total revenue and $130 million in net income.
GAAP and adjusted EPS both dropped but the insurer is bolstering its year-end guidance to the range of $10.90 to $11.
WellCare CEO Ken Burdick is "excited about our substantial growth outlook" as the insurer heads into 2019.