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Stock Market & Financial Investment News

News Breaks
July 25, 2014
12:11 EDTAET, CI, UNH, WCG, WLPWellCare 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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October 17, 2014
07:27 EDTUNHUnitedHealth upgraded to Outperform from Market Perform at Leerink
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06:09 EDTUNHUnitedHealth upgraded to Outperform from Market Perform at Leerink
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October 16, 2014
09:29 EDTUNHUnitedHealth contines to see stable trends across businesses
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09:23 EDTUNHOn The Fly: Pre-market Movers
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09:12 EDTUNHUnitedHealth expects top, bottom-line growth acceleration in next two years
Says seeing steady progress across all businesses. Believes products well positioned locally. Says on-course to participate in 2 dozen state exchanges in FY15. Says consensus estimates for FY15 outlook are "well calibrated". Says "feels good" about the company's FY15 position. Expects to grow meaningfully at sustainable margins in FY15. Expects to grow earnings across the board for FY15. Says all of its businesses are better positioned for FY15 as opposed to FY14. Says Obamacare exchange business is expected to be profitable in FY15. Says Optum unit sales will be above targets. Says will grow y just under 1M Medicaid members this year. Comments made during the company's Q3 earnings conference call.
08:37 EDTWCGWellCare receives NCQA quality accreditation for Medicaid, Medicare plans in KY
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06:10 EDTUNHUnitedHealth reports Q3 Employer & Individual revenue $10.6B
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06:08 EDTUNHUnitedHealth: Affordable Care Act reduced Q3 by 80 basis points
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06:07 EDTUNHUnitedHealth sees FY14 EPS $5.60-$5.65, consensus $5.58
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06:01 EDTUNHUnitedHealth reports Q3 EPS $1.63, consensus $1.53
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October 15, 2014
15:28 EDTUNHNotable companies reporting before tomorrow's open
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13:52 EDTAETAetna will not renew contract for Delaware Medicaid program
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07:27 EDTWLPModern Healthcare to hold a virtual conference
Building Tomorrow's Delivery Model: Forging a Path to Value is being held on October 15 at 9:30 am. Webcast Link
October 14, 2014
10:01 EDTCIOn The Fly: Analyst Downgrade Summary
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08:40 EDTCICigna downgraded at Sterne Agee
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07:05 EDTUNHUnitedHealth October volatility elevated into Q3 and guidance
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05:49 EDTCICigna downgraded to Neutral from Buy at Sterne Agee
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October 13, 2014
07:15 EDTUNHNational Association of Corporate Directors to hold a conference
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October 9, 2014
08:03 EDTWLP, AETWellPoint named top Managed Care pick at Jefferies
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06:33 EDTUNHMaximus appoints Kelly Clark as new Chief Information Officer
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