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Stock Market & Financial Investment News

News Breaks
July 25, 2014
12:11 EDTWLP, CI, WCG, AET, UNHWellCare 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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January 29, 2015
08:44 EDTUNHUnitedHealth selects Gilead's Harvoni for hepatitis C coverage, Reuters says
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January 27, 2015
18:05 EDTAETAetna in three-year reinsurance arrangement with Vitality Re VI Limited
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January 26, 2015
12:39 EDTWLP, UNH, CI, WCG, AETHHS Secretary orders Medicare to change payment method, WSJ says
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09:16 EDTCICigna to acquire QualAlliance Networks, terms not disclosed
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January 22, 2015
08:15 EDTUNHUnitedHealth price target raised to $125 from $115 at Leerink
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January 21, 2015
09:16 EDTUNHOn The Fly: Pre-market Movers
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06:06 EDTUNHUnitedHealth: Employer & Individual revenues decreased to $43B in 2014
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06:05 EDTUNHUnitedHealth: ACA negatively impacted FY earnings by $1.00 per share
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06:02 EDTUNHUnitedHealth sees FY15 EPS $6.00-$6.25, consensus $6.17
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06:01 EDTUNHUnitedHealth reports Q4 EPS $1.55, consensus $1.50
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January 20, 2015
15:21 EDTUNHNotable companies reporting before tomorrow's open
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14:06 EDTCICitizens, Keysight identified as long positions by Einhorn
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13:24 EDTCIGreenlight has new long positions in Citizens, Time Warner, Bloomberg says
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12:57 EDTUNHUnitedHealth volatility elevated into Q4 and outlook
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January 18, 2015
17:40 EDTAETAetna customers can switch coverage after mistake, Bloomberg says
Aetna is being investigated by the U.S. for misleading elderly and disabled people about which pharmacies would fill prescriptions in Medicare drug plans the health insurer sold them, says Bloomberg. According to the Bloomberg report, customers will be able to quit their coverage and choose a new plan this year as a result. Raymond Thorn, a spokesman for the Centers for Medicare and Medicaid Services said Aetna may be fined or prohibited from enrolling new Medicare customers if the agency determines it intentionally misled Medicare patients, added Bloomberg. Reference Link

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