WellCare Health Plans, Inc (WCG) has reported 88.46 percent jump in profit for the quarter ended Sep. 30, 2016. The company has earned $68.60 million, or $1.54 a share in the quarter, compared with $36.40 million, or $0.82 a share for the same period last year. On an adjusted basis, earnings per share were at $1.63 for the quarter compared with $1.04 in the same period last year. Revenue during the quarter grew 4.16 percent to $3,584 million from $3,441 million in the previous year period. Net premium earned for the quarter increased 4.12 percent or $141.50 million to $3,578.80 million.
Total expenses move up marginally
Benefits, losses and expenses for the quarter were at $3,431.10 million, or 95.87 percent of premium earned from $3,336.30 million or 97.06 percent of premium earned in the last year period. Operating loss for the quarter was $342.80 million, compared with an operating loss of $343.40 million in the previous year period. For financial year 2016, the company projects diluted earnings per share to be in the range of $5.35 to $5.45 on adjusted basis.
“Our continued focus on operational execution resulted in another strong quarter for WellCare,” said Kenneth A. Burdick, WellCare’s chief executive officer. “Our third quarter 2016 results demonstrate the progress we are making toward achieving our multi-year goal of improving margin on our existing business. As a result of our third quarter performance and our outlook for the remainder of this year, we are raising our full-year 2016 adjusted earnings per diluted share guidance to a range of $5.35 to $5.45.”
Operating cash flow improves significantly
WellCare Health Plans, Inc has generated cash of $1,080.30 million from operating activities during the nine month period, up 354.10 percent or $842.40 million, when compared with the last year period. The company has spent $53.80 million cash to meet investing activities during the nine month period as against cash outgo of $103.40 million in the last year period.
Cash flow from financing activities was $444.90 million for the nine month period as against cash outgo of $24.90 million in the last year period.
Cash and cash equivalents stood at $3,878.40 million as on Sep. 30, 2016, up 172.53 percent or $2,455.30 million from $1,423.10 million on Sep. 30, 2015.
Liabilities outpace assets growth
Total assets increased 32.08 percent or $1,584.80 million to $6,525.50 million on Sep. 30, 2016. On the other hand, total liabilities were at $4,582.60 million as on Sep. 30, 2016, up 41.81 percent or $1,351.10 million from year-ago.
Return on assets stood at 1.27 percent in the quarter, up 0.23 from 1.04 percent in the last year period. At the same time, return on equity was at 3.53 percent in the quarter, up 1.40 from 2.13 percent in the last year period.
Investments stood at $91.50 million as on Sep. 30, 2016, down 74.97 percent or $274 million from year-ago.
Shareholders equity stood at $1,942.90 million as on Sep. 30, 2016, up 13.67 percent or $233.70 million from year-ago.
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