WellPoint Inc. (WLP) entered into an affiliation with FitOrbit, Inc., in order to provide a wide array of health and wellness solutions to their clients. The company, with an intention of helping clients to better manage their health care cost, chose FitOrbit, which offers round-the-clock virtual services and support to consumers.
According to sources, approximately 42% of the American population could be affected by obesity by 2030, with 11% severely obese. Therefore, the company believes FitOrbit’s involvement will thus augment its health and wellness offerings.
WellPoint along with Spark Capital will invest in FitOrbit’s industry-leading platform and expects to offer FitOrbit solutions in chosen products in early 2013. WellPoint is the first and only health benefits company to associate with FitOrbit.
Earnings Recap
WellPoint posted a solid first quarter with earnings surpassing the Zacks Consensus Estimate on the back of improved top line, which was driven by premium growth and the positive impact of the CareMore acquisition. However, membership decline and increased benefit expense were the downsides.
Estimates Revisions
Over the last 7 days, there was no earnings momentum. However, over the last 30 days, six out of 17 estimates were raised for the second quarter and seven out of 15 estimates were raised for full year 2012. For the same period, 10 out of 17 estimates were raised for full year 2013.
Nevertheless, over the last 30 days, seven out of 17 estimates were nudged downward for second quarter of 2012 while there were no downward revisions for full year 2012. For 2013, two out of 17 estimates were revised downward for the same period.
The Zacks Consensus Estimates for the second quarter and full year 2012 are currently pegged at $2.09 and $7.76 respectively. This represents an increase of 14.2% and 11.8% year over year, respectively. For 2013, the Zacks Consensus Estimate is $8.55.
We have a long term Neutral recommendation on WellPoint. The quantitative Zacks #3 Rank (short term Hold rating) for the company indicates no clear directional pressure on the stock over the near term.
Based in Indianapolis, Indiana, WellPoint Inc. is the largest publicly traded managed care organization in terms of membership. The company competes with Aetna Inc. (AET), Cigna Corp. (CI) and Unitedhealth Group Inc. (UNH).
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WELLPOINT INC (WLP): Free Stock Analysis Report
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