WellPoint Reaffirms FY13 Earnings Forecast Below Market View - Update

(RTTNews) - Health insurer WellPoint Inc. (WLP), in a regulatory filing, said it expects to reaffirm its reported and adjusted earnings forecast for fiscal 2013.

In a Securities and Exchange Commission or SEC filing, the company said it continues to expect full-year net income per share of at least $7.89, including net costs of $0.11 per share.

These items include expenses related to the early retirement of debt of $0.32 per share, acquisition and integration related costs of $0.05 per share and other-than-temporary impairment losses on investments of $0.10 per share. These were partly offset by $0.21 per share of tax benefits from a favorable tax election and $0.15 per share of net realized gains on investments.

Excluding these items, WellPoint still projects annual adjusted net income of at least $8.00 per share. The company added that its outlook includes no investment gains or losses beyond those recorded during the first half of 2013.

For fiscal 2012, the company's reported earnings were $8.18 per share and adjusted earnings were $7.56 per share.

On average, 20 analysts polled by Thomson Reuters estimate earnings per share of $8.26 for 2013. Analysts' estimates typically exclude one-time items. In its filing, WellPoint said its officers are expected to confirm the forecast while speaking with securities analysts and investors during the period commencing on September 10 and ending on September 27.

In late July, the company had lifted its annual earnings forecast while announcing strong growth in second-quarter results helped by the acquisition of Amerigroup. However, the company then cut its revenue forecast to $70 billion to $72 billion. Analysts expect revenues of $70.55 billion.

The company then said that medical enrollment at the end of the year is expected to be in the range of 35.3 to 35.5 million. WellPoint shares closed Monday's trading at $86.71, down $0.58 or 0.66 percent.