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Stock Market & Financial Investment News

News Breaks
July 25, 2014
12:11 EDTUNH, WLP, CI, WCG, AETWellCare profit warning sinks managed care names
A number of managed care names are falling after one of the companies in the sector, WellCare (WCG), preannounced significantly weaker than expected results. UBS, however, recommends using the weakness in the sector as a buying opportunity. WHAT'S NEW: WellCare, which specializes in managing Medicaid and Medicare plans, preannounced a second quarter per share loss of 7c, excluding certain items. Analysts on average expected the company to report a per share profit of 90c. The company's revenue came in slightly above expectations. WellCare cut its full-year earnings per share guidance to $2.20-$2.50 from $4.40-$4.75. The company said recipients of a new Medicaid program in Florida utilized more medical services than expected since the company began administering the program in May. Additionally, the company took an impairment charge related to an acquisition and it had an unfavorable reserve development. ANALYST REACTION: The factors cited by WellCare for the cut in its guidance appear to be specific to that company, UBS analyst A.J. Rice wrote. Meanwhile, data from other companies that administer Medicaid plans indicate that the increased utilization costs in that state are also specific to WellCare, Rice contended. For example, Centene (CNC) reported Q2 results earlier this week and indicated that utilization trends for newly covered beneficiaries in Florida was largely in line with expectations, while UnitedHealth (UNH) said its Medicaid business had performed well last quarter, the analyst stated. Additionally, WellCare said that its higher than expected medical utilization costs had been caused primarily by drug costs that exceeded its forecast, Rice stated. Since drug costs tend to be known relatively quickly, United Health and Centene would have divulged any issues with drug costs in conjunction with their Q2 results, Rice said. The analyst recommended that investors buy Aetna (AET), Cigna (CI), United Health and WellPoint (WLP) on any weakness today. PRICE ACTION: In late morning trading, Aetna fell 1.5% to $83, Cigna lost 1% to $95.50, UnitedHealth lost 1% to $84.50, WellPoint slid 1.5% to $113.50 and Centene tumbled 7% to $74 while WellCare plunged 19% to $62.
News For AET;CI;UNH;WCG;WLP From The Last 14 Days
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November 21, 2014
16:36 EDTAETMarket ends week higher as domestic data, foreign central banks boost shares
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14:27 EDTAETAetna raises quarterly dividend 11%, authorizes additional $1B share buyback
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14:26 EDTAETAetna raises quarterly dividend 11%, authorizes additional $1B share buyback
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November 17, 2014
07:16 EDTAETMilken Institute--Faster Cures to hold a conference
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November 14, 2014
16:52 EDTCIGreenlight Capital gives quarterly update on stakes
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08:04 EDTWLPWellPoint, Boehringer Ingelheim announce first project under collaboration
Boehringer Ingelheim Pharmaceuticals, WellPoint and HealthCore, announced that the companies are commencing a research project to identify and address unmet medical needs across populations of mutual interest. The first stage of the project will focus on non-valvular atrial fibrillation and will examine disease prevalence, treatment complications, such as hospital readmissions, and the use of evidence-based guidelines. This project is the first under the parties’ five-year research collaboration agreement, signed earlier this year. Information gathered through the NVAF project is intended to provide the basis for the collaborative development of healthcare interventions, which can be evaluated within WellPoint’s affiliated health plans and provider networks.
November 13, 2014
16:40 EDTWCGPennant Capital reports 7.0% passive stake in WellCare
November 12, 2014
08:58 EDTWLP, CI, AETManaged Care earnings risk low from King vs. Burwell, says Leerink
Leerink believes the Supreme Court decision to the King vs. Burwell case carries low earnings risk for Managed Care companies. The case to determine the legality of Exchange subsidies administered by the Federal Government carries less than 2% and 3% of earnings risk for 2014 and 2015 estimates, respectively, Leerink believes. The firm says Humana (HUM) and Cigna (CI) are currently losing money on Exchanges, and thus could benefit from any Federal Exchange membership loss. Leerink lists Aetna (AET), Centene (CNC), WellPoint (WLP) and Molina Healthcare (MOH) as being most impacted.
08:02 EDTAETCredit Suisse to hold a conference
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07:55 EDTAETAetna to reaffirm FY14 operating EPS view $6.60-$6.70, consensus $6.68
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07:31 EDTUNHUnitedHealth announces formation of office of the CEO
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November 11, 2014
12:55 EDTCI, UNH, WCG, WLP, AETWorkarounds to likely protect insurers from Supreme Court decision, says Wedbush
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