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WellCare Health (WCG) Q4 Earnings Beat, Revenues Miss

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WellCare Health Plans, Inc.WCG is a leading managed care company that is engaged in providing government-sponsored managed care services since May 2002.

The Florida-based company has grown substantially in the last three years through acquisitions, partnerships and alliances. High level of financial liquidity has supported the company's inorganic growth initiatives that have been the main revenue driver till date. Continuous focus on maximizing shareholders value have always made the stock lucrative to investors.

However, WellCare Health suffers from rising level of debts. Consistently surging expenses also remain a major threat for the company. Moreover, Donald Trump's decision to repeal former President Barrack Obama's Affordable Care Act (ACA), that has casted an air of uncertainty on the medical sector, also remains a major headwind for this company.

WellCare Health has a decent history when it comes to earnings as the company has beaten estimates in the last four quarters, making for an average surprise of 62.72%.

Currently, WellCare Health holds a Zacks Rank #1 (Strong Buy), but that could definitely change following its earnings report which was just released.

We have highlighted some of the key stats from this just-revealed announcement below:

Earnings : WellCare Health beats on earnings. Our consensus called for EPS of 53 cents, and the company reported EPS of $1.03.

WellCare Health Plans, Inc. Price and EPS Surprise

WellCare Health Plans, Inc. Price and EPS Surprise | WellCare Health Plans, Inc. Quote

Revenue : Operating revenues missed our estimate. Our consensus called for revenues of $3.57 billion, and the company reported revenues of $3.51 billion.

Key Stats to Note :

Total Expenses of $3.44 billion decreased 0.67% over the prior year quarter.

Operating cash flow was $332 million, down 30% year over year .

The company expects adjusted earnings per diluted share to be in the range of $6.00- $6.25. Total adjusted premium revenues are expected to be in the range of $15.12 billion to $15.80 billion. Investment & other income is anticipated to be $18 million to $21 million. The company expects to incur interest expenses within the range of $58 million to $60 million.

Check back later for our full write up on this WellCare Health earnings report later!

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WellCare Health Plans, Inc. (WCG): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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