) is set to report first-quarter 2014 results on April 30, 2014.
Last quarter, it posted a 1.16% surprise. Let's see how things
are shaping up for this announcement.
Factors This Past Quarter
In the first quarter, WellPoint has been upfront in taking up
initiatives that would strengthen its capacities as a healthcare
service provider. Among these initiatives, the collaborations
) and American Academy of Pediatrics in Feb 2014 are worth a
special mention. Moreover, to focus on core operations, WellPoint
divested its online contact lens retail subsidiary, 1-800
CONTACTS and glasses.com.
Toward making its services more accessible to its members,
WellPoint adopted the Web Content Accessibility Guidelines (WCAG)
version 2.0 level AA as its accessibility standard during the
quarter. However, increasing medical cost experience raises
Our proven model does not conclusively show that WellPoint is
likely to beat earnings this quarter. That is because a stock
needs to have both a positive
and a Zacks Rank of #1, 2 or 3 for this to happen. That is not
the case here as you will see below.
Zero Zacks ESP:
That is because both the Most Accurate estimate and the Zacks
Consensus Estimate stand at $2.12 per share, making the
Zacks Rank #2 (Buy):
WellPoint's Zacks Rank #2 increases the predictive power of ESP,
but when combined with a zero ESP, it makes surprise prediction
We caution against stocks with Zacks Rank #4 and 5 (Sell-rated
stocks) going into the earnings announcement, especially when the
company is seeing zero or negative estimate revisions
Other Stocks to Consider
Here are some other companies you may want to consider as our
model shows they have the right combination of elements to post
an earnings beat this quarter:
) with Earnings ESP of +3.45% and Zacks Rank #2.
) with Earnings ESP of +1.55% and Zacks Rank #3 (Hold).
HUMANA INC NEW (HUM): Free Stock Analysis
HEALTHWAYS INC (HWAY): Free Stock Analysis
MEDASSETS INC (MDAS): Free Stock Analysis
WELLPOINT INC (WLP): Free Stock Analysis
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