Why Has WellCare’s Stock Gained 15% Over The Last Month?

November 15th, 2019 by Trefis Team

WellCare Health Plans, Inc. (NYSE: WCG) is a leading managed care company that provides government-sponsored managed care services to families, children, seniors and individuals with complex medical needs. Wellcare has seen its stock price rise 15% over the last month, driven in part by reasonably strong Q3 FY’19 results that were published in late October. The company’s revenues surged 43% YoY to $7.1 billion while adjusted EPS grew 65% to $5.50, beating estimates by nearly 40%. The revenue growth was driven by the company’s acquisition of Meridian as well as by strong organic growth. The company benefited from strong membership growth in the Medicaid segment – ending the quarter with 4.1 million members, which was an increase of 4.5% from the year-ago period

View our interactive dashboard analysis on What’s Driving The Rally In WellCare Health Plans’ Stock?

How does WellCare Health Plans’ Revenue Growth 2018 compare with that in prior periods and what’s the forecast?

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Total Revenues for WellCare Health Plans significantly increased from $17.0 Billion in 2017 to $20.4 Billion in 2018; an increase of 20.0%.

This compares with Total Revenues growth of:

  • 7.17% in 2015 compared to 2014
  • 2.50% in 2016 compared to 2015
  • 19.5% in 2017 compared to 2016

We expect Total Revenues growth to be 36.7% in 2019.

 

How does WellCare Health Plans’ Total Expense 2018 compare with that in prior periods and what’s the forecast?

Total Expense for WellCare Health Plans increased significantly from $16.5 Bil in 2017 to $19.7 Bil in 2018; an increase of 19.2%.

This compares with Total Expense growth of:

  • 6.04% in 2015 compared to 2014
  • 1.13% in 2016 compared to 2015
  • 20.7% in 2017 compared to 2016

We expect the Meridian acquisition to result in Total Expense swelling by 36.2% in 2019.

 

How does WellCare Health Plans’ EBT 2018 compare with that in prior periods and what’s the forecast?

EBT for WellCare Health Plans jumped 50.1% from $462 Mil in 2017 to $693 Mil in 2018. We expect EBT to increase 50.4% to $1 Billion in 2019.

 

How does WellCare Health Plans’ Net Income 2018 And EPS compare with that in prior periods and what’s the forecast?

For more information on WellCare Health Plans’ Net Income and EPS, view our interactive dashboard analysis.

 

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