EmailWellCare Group (WCG $68.94 +5.87) reported fourth quarter earnings of $2.15 per share, excluding non-recurring items, $0.96 better than the consensus of $1.19, while revenues rose 18.0% year/year to $1.6 billion versus the $1.6 bln consensus. Premium revenue for the fourth quarter increased 18% year over year to $1.6 billion.
The increase was driven by growth in PDP segment premium revenue, which increased 26% YoY. In addition, Medicare Advantage segment revenue increased 18% and Medicaid segment revenue increased 17% year/year.
Adjusted net income for Q4 increased YoY, primarily due to the favorable development of medical benefits payable as well as higher premium revenue. In addition, resolution of prior years' state tax matters contributed to the better-than-anticipated outcome. Results for Q4 also were affected by greater-than-expected Kentucky Medicaid membership following the Company's November launch of the program. The company issued upside guidance for fiscal year 2012 with EPS of ~$4.40-4.60, excluding non-recurring items, versus the $4.23 consensus.
