WellPoint Q3 Profit Falls, Adj. EPS Beats Estimates; Lifts FY13 Profit View

(RTTNews) - Health insurer WellPoint, Inc. (WLP) announced that third quarter 2013 net income decreased to $656.2 million, from $691.2 million in the third quarter of 2012. But, net income per share rose to $2.16 from $2.15 in the prior year quarter.

The latest-quarter results included net income of $0.06 per share, reflecting a favorable tax election and net investment gains, which were partially offset by expenses related to the early retirement of debt.

The prior year quarter results included net income of $0.06 per share, reflecting net investment gains partially offset by acquisition-related costs.

Adjusted net income for the quarter declined to $640.6 million from the prior year's $672.1 million. Adjusted net income was $2.10 per share in the third quarter of 2013, an increase of 0.5 percent compared with adjusted net income of $2.09 per share in the prior year quarter. Analysts polled by Thomson Reuters expected the company to report earnings of $1.82 per share for the quarter. Analysts' estimates typically exclude special items.

Total operating revenue for the quarter increased to $17.73 billion from last year's $15.13 billion. Twelve analysts had consensus revenue estimate of $17.62 billion for the quarter.

The company said its board declared a quarterly dividend to shareholders for the fourth quarter of 2013 of $0.375 per share. The fourth quarter dividend is payable on December 23, 2013, to shareholders of record at the close of business on December 9, 2013.

For full year 2013, the company now expects net income to be at least $8.45 per share, and , adjusted net income of at least $8.40 per share. Analysts expect the company to report earnings of $8.28 per share for fiscal 2013.

The company said in September that it continued to expect full-year 2013 net income per share of at least $7.89, including net costs of $0.11 per share. Excluding items, the company still projected annual adjusted net income of at least $8.00 per share.