On Wednesday, WellCare Health Plans, Inc. (NYSE: WCG) shares price traded between $246.60 and $250.16 during the last trading session upbeat with +1.16 percent at $249.69. The shares recorded a trading volume 150,531 shares as compared to its average volume of 323,361 shares. The stock as of last trading session moved 53.89 percent up from its 52 week low and was 0.71 percent above its 52 week high.
WellCare Health Plans, Inc. (WCG) recently stated results for the quarter ended March 31, 2018. As determined under generally accepted accounting principles (GAAP), net income for the 1st quarter of 2018 was $101.7M, or $2.25 per diluted share. Adjusted net income for the 1st quarter of 2018 was $111.8M, or $2.47 per diluted share.
Key Highlights
- GAAP and adjusted total premium revenue of $4.6Band $4.5B for the 1st quarter of 2018 raised 17.2 percent and 15.6 percent, respectively, contrast with the 1st quarter of 2017.
- GAAP and adjusted Medicaid Health Plans premium revenue of $2.8Band $2.7Bfor the first quarter of 2018 raised 8.7 percent and 6.2 percent, respectively, contrast with the first quarter of 2017.
- Medicare Health Plans premium revenue of $1.6Bfor the 1st quarter of 2018 raised 42.2 percent contrast with the first quarter of 2017.
- GAAP and adjusted Medicaid Health Plans MBR for the 1st quarter of 2018 reduced 310 basis points and 110 basis points, respectively, contrast with the first quarter of 2017.
- GAAP and adjusted net income margin for the 1st quarter of 2018 raised about 50 basis points to 2.2 percent and about 70 basis points to 2.5 percent, respectively, contrast with the 1st quarter of 2017.
- On April 24, 2018, WellCare of Florida, Inc., a subsidiary of WellCare and known as Staywell Health Plan, received a Notice of Agency Decision from the Florida Agency for Health Care Administration that it intends to award Staywell a new 5-year contract to provide managed care services to Medicaid-eligible beneficiaries, including Managed Medical Assistance and Long-Term Care in 10 of 11 regions and Serious Mental Illness Specialty Plan services statewide. The new Statewide Medicaid Managed Care program is predictable to start no earlier than October 1, 2018.
- As before reported on March 13, 2018, Care1st Arizona, a subsidiary of WellCare, was selected to enter a contract with the state of Arizona’sMedicaid program, the Arizona Health Care Cost Containment System (AHCCCS) to coordinate the provision of physical and behavioral services in the Central and North geographic service areas (GSAs). Services under the new contract are predictable to start on October 1, 2018.
- As of March 31, 2018, unregulated cash and investments were about $561.3M.
2018 Financial Outlook
- WellCare is increasing its full-year adjusted EPS guidance to a range of $10.00to $10.30from its previous guidance range of $9.55 to $9.85 per diluted share. Refer to the Appendix included in this news release for specific 2018 guidance metrics, related footnotes and basis of presentation.
- Consolidated Operations Results
- GAAP net income for the 1st quarter of 2018 was $101.7M, or $2.25per diluted share, contrast with GAAP net income of $67.3M, or $1.50 per diluted share, for the 1st quarter of 2017. Adjusted net income for the first quarter of 2018 was $111.8M, or $2.47 per diluted share, contrast with adjusted net income of $72.0M, or $1.61 per diluted share, for the 1st quarter of 2017. The year-over-year raises in GAAP and adjusted net income are primarily the result of improved Medicaid Health Plans and Medicare PDP section MBRs as well as the acquisition in 2017 of Universal American Corp. (“Universal American”). The year-over-year raises are also Because of the effect of the lower federal effective tax rate, which was a result of the Tax Cuts and Jobs Act of 2017, effective January 1, 2018. The raises were partially offset by the return of the ACA Health Insurer Fee (HIF), which is nondeductible for tax purposes.
- GAAP net income margin for the 1st quarter of 2018 was 2.2 percent contrast with 1.7 percent for the first quarter of 2017. Adjusted net income margin for the 1st quarter of 2018 was 2.5 percent contrast with 1.8 percent for the first quarter of 2017.
- GAAP and adjusted total premium revenue of $4.6Band $4.5B for the first quarter of 2018 raised 17.2 percent and 15.6 percent, respectively, contrast with the 1st quarter of 2017. The year-over-year raises in GAAP and adjusted total premium revenue were primarily the result of net organic growth and the company’s acquisition of Universal American.
- GAAP SG&A expense was $355.9Mfor the 1st quarter of 2018 contrast with $302.4M for the 1st quarter of 2017. Adjusted SG&A expense was $353.1M for the 1st quarter of 2018 contrast with $298.2M for the 1st quarter of 2017. The year-over-year raises in GAAP and adjusted SG&A expense were primarily the result of the company’s growth. The GAAP SG&A expense ratio of 7.7 percent in the 1st quarter of 2018 was flat contrast with the first quarter of 2017. The adjusted SG&A expense ratio was 7.8 percent in the 1st quarter of 2018 contrast with 7.6 percent in the 1st quarter of 2017.
The Company has 44.61 million shares outstanding and 44.50 million shares were floated in market. The short ratio in the company’s stock is documented at 4.25 and the short float is around of 3.10 percent. The average true range of the stock is observed at 4.24 and the relative strength index of the stock is recorded at 73.52.
