Earnings Preview: Analysts Expect WellPoint Revenue, Earnings to Dip from Previous Quarter

WellPoint WLP announces its next round of earnings this Wednesday, July 27, 2011. Here's Benzinga's essential guide to WellPoint's second quarter earnings report.

Earnings and Revenue:

Analysts are predicting an EPS reading of $1.79 per share and revenues of $14.65 billion. Whether the reported numbers beat or miss analysts' estimates, they will also be compared against last year's numbers for the same period, which were a profit of $1.67 per share on revenues of $14.22 billion. We'll have to wait for Wednesday to see if WellPoint reports a rise in EPS and revenue from the year-ago quarter, as analysts are expecting.

Here's how the company's reported EPS has stacked up against analyst estimates in the past:

Stock Performance:

At last check, shares of WellPoint were trading at $74.65. Since January 1st, shares of WellPoint have given investors a return of 32.2%. For a full 12 months, the return has risen by 35.5%. Given that these returns are generally positive, long-term shareholders are probably satisfied going into this earnings release.

• Long-term shareholders are already enjoying 12-month gains prior to the announcement

Average Stock Rating:

The average rating by analysts for WellPoint is a Moderate Buy. The strength of this rating has crept upwards over the past three months.

Competitors:

Looking for a sympathy stock to trade or interested in the performance of other companies in the same sector? Take a look at some of WellPoint's peers.

• Aetna AET: Moderate Buy with a $1.43 recent quarter EPS
• CIGNA CI: Hold with a $1.37 recent quarter EPS
• Coventry Health Care CVH: Hold with a $0.66 recent quarter EPS
• Health Net HNT: Hold with a $0.61 recent quarter EPS

WellPoint is in the medical-HMO industry, which has experienced price/earnings growth of 1.1%.

Finally, a description of the company's main areas of operation: WellPoint is a health benefits company which offers a spectrum of network-based managed care plans to employers individuals and senior markets.

Take Action:

Now that you've gotten an advanced peak at WellPoint's upcoming earnings numbers, keep an eye out for any surprises in the report and be ready to take action. Also, check back in with us after the announcement for a full recap and a guide to your next steps.

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