WellPoint Inc. (WLP, Financial) filed Quarterly Report for the period ended 2010-09-30.
Wellpoint Inc. has a market cap of $22.39 billion; its shares were traded at around $55.75 with a P/E ratio of 8.7 and P/S ratio of 0.3. Wellpoint Inc. had an annual average earning growth of 21.6% over the past 10 years.WLP is in the portfolios of Steven Romick of FPA Crescent Fund, Jeff Auxier of Auxier Focus Fund, Lee Ainslie of Maverick Capital, John Hussman of Hussman Economtrics Advisors, Inc., Edward Owens of Vanguard Health Care Fund, John Hussman of Hussman Economtrics Advisors, Inc., James Barrow of Barrow, Hanley, Mewhinney & Strauss, First Pacific Advisors of First Pacific Advisors, LLC, Dodge & Cox, Jean-Marie Eveillard of First Eagle Investment Management, LLC, Wallace Weitz of Weitz Wallace R & Co, Paul Tudor Jones of The Tudor Group, Eric Mindich of Eton Park Capital Management, L.P., Jeremy Grantham of GMO LLC, Bruce Kovner of Caxton Associates, Donald Yacktman of Yacktman Asset Management Co., Donald Yacktman of Yacktman Asset Management Co., Richard Snow of Snow Capital Management, L.P., George Soros of Soros Fund Management LLC, Pioneer Investments, Steven Cohen of SAC Capital Advisors, David Dreman of Dreman Value Management, Richard Pzena of Pzena Investment Management LLC.
Operating revenue for the nine months ended September 30, 2010 was $43.4 billion, a decrease of $2.3 billion, or 5%, from the nine months ended September 30, 2009, primarily due to fully-insured membership declines in our Local Group and National Accounts businesses resulting from the unfavorable economic conditions, certain UniCare members transitioning to HCSC beginning January 1, 2010 and the conversion of a large municipal account from fully-insured to self-funded status in April 2010. In addition, the sale of our PBM business and the loss of certain 2010 Part D LIS membership within our Senior business contributed to the operating revenue decline. These decreases were partially offset by higher premiums in our Local Group and National Accounts businesses that were necessary to cover cost trends, increased reimbursement in the FEP program and increased membership in our Senior Medicare Advantage business and certain State-Sponsored programs.
Net income for the three months ended September 30, 2010 was $739.1 million, an increase of $8.9 million, or 1%, from the three months ended September 30, 2009. This increase in net income resulted primarily from a charge for impairment of other intangible assets in 2009 that was not repeated in the third quarter of 2010, improved operating results in our Commercial segment, a decline in other-than-temporary impairment losses on investments and increased realized gains on investments. These increases were partially offset by lower operating results in our Consumer and Other segments. For additional details, see Results of Operations Three Months Ended September 30, 2010 Compared to the Three Months Ended September 30, 2009 included in this MD&A. Our fully-diluted earnings per share, or EPS, was $1.84 for the three months ended September 30, 2010, which represents a 20% increase over the EPS of $1.53 for the three months ended September 30, 2009. The increase in EPS resulted primarily from the lower number of shares outstanding in 2010 due to share buy back activity under our share repurchase program.
Net income for the nine months ended September 30, 2010 was $2.3 billion, an increase of $334.2 million, or 17%, from the nine months ended September 30, 2009. This increase in net income resulted primarily from a decline in other-than-temporary impairment losses on investments, increased realized gains on investments, improved operating results in our Commercial segment, reduced impairment of other intangible assets, lower interest expense and lower amortization of other intangible assets. These increases were partially offset by lower operating results in our Other and Consumer segments and increased income taxes resulting primarily from increased net income. For additional details, see Results of Operations Nine Months Ended September 30, 2010 Compared to the Nine Months Ended September 30, 2009 included in this MD&A. Our fully-diluted EPS was $5.52 for the nine months ended September 30, 2010, which represents a 34% increase over the EPS of $4.12 for the nine months ended September 30, 2009. The increase in EPS resulted primarily from both the lower number of shares outstanding in 2010 due to share buy back activity under our share repurchase program and increased net income.
Operating cash flow for the nine months ended September 30, 2010 was $829.7 million, and included a $1.2 billion tax payment in March 2010 to the Internal Revenue Service, or IRS, related to the gain we realized on our PBM sale on December 1, 2009. Operating cash flow for the nine months ended September 30, 2009 was $3.0 billion, or 1.5 times net income. The decrease in operating cash flow from 2009 was driven primarily by the $1.2 billion tax payment, increased incentive compensation payments in 2010, claims run out from the membership transfers in Texas and Illinois and a reduction in Medicare Part D LIS enrollment, in 2010.
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Wellpoint Inc. has a market cap of $22.39 billion; its shares were traded at around $55.75 with a P/E ratio of 8.7 and P/S ratio of 0.3. Wellpoint Inc. had an annual average earning growth of 21.6% over the past 10 years.WLP is in the portfolios of Steven Romick of FPA Crescent Fund, Jeff Auxier of Auxier Focus Fund, Lee Ainslie of Maverick Capital, John Hussman of Hussman Economtrics Advisors, Inc., Edward Owens of Vanguard Health Care Fund, John Hussman of Hussman Economtrics Advisors, Inc., James Barrow of Barrow, Hanley, Mewhinney & Strauss, First Pacific Advisors of First Pacific Advisors, LLC, Dodge & Cox, Jean-Marie Eveillard of First Eagle Investment Management, LLC, Wallace Weitz of Weitz Wallace R & Co, Paul Tudor Jones of The Tudor Group, Eric Mindich of Eton Park Capital Management, L.P., Jeremy Grantham of GMO LLC, Bruce Kovner of Caxton Associates, Donald Yacktman of Yacktman Asset Management Co., Donald Yacktman of Yacktman Asset Management Co., Richard Snow of Snow Capital Management, L.P., George Soros of Soros Fund Management LLC, Pioneer Investments, Steven Cohen of SAC Capital Advisors, David Dreman of Dreman Value Management, Richard Pzena of Pzena Investment Management LLC.
Highlight of Business Operations:
Operating revenue for the three months ended September 30, 2010 was $14.3 billion, a decrease of $0.9 billion, or 6%, from the three months ended September 30, 2009, primarily due to fully-insured membershipOperating revenue for the nine months ended September 30, 2010 was $43.4 billion, a decrease of $2.3 billion, or 5%, from the nine months ended September 30, 2009, primarily due to fully-insured membership declines in our Local Group and National Accounts businesses resulting from the unfavorable economic conditions, certain UniCare members transitioning to HCSC beginning January 1, 2010 and the conversion of a large municipal account from fully-insured to self-funded status in April 2010. In addition, the sale of our PBM business and the loss of certain 2010 Part D LIS membership within our Senior business contributed to the operating revenue decline. These decreases were partially offset by higher premiums in our Local Group and National Accounts businesses that were necessary to cover cost trends, increased reimbursement in the FEP program and increased membership in our Senior Medicare Advantage business and certain State-Sponsored programs.
Net income for the three months ended September 30, 2010 was $739.1 million, an increase of $8.9 million, or 1%, from the three months ended September 30, 2009. This increase in net income resulted primarily from a charge for impairment of other intangible assets in 2009 that was not repeated in the third quarter of 2010, improved operating results in our Commercial segment, a decline in other-than-temporary impairment losses on investments and increased realized gains on investments. These increases were partially offset by lower operating results in our Consumer and Other segments. For additional details, see Results of Operations Three Months Ended September 30, 2010 Compared to the Three Months Ended September 30, 2009 included in this MD&A. Our fully-diluted earnings per share, or EPS, was $1.84 for the three months ended September 30, 2010, which represents a 20% increase over the EPS of $1.53 for the three months ended September 30, 2009. The increase in EPS resulted primarily from the lower number of shares outstanding in 2010 due to share buy back activity under our share repurchase program.
Net income for the nine months ended September 30, 2010 was $2.3 billion, an increase of $334.2 million, or 17%, from the nine months ended September 30, 2009. This increase in net income resulted primarily from a decline in other-than-temporary impairment losses on investments, increased realized gains on investments, improved operating results in our Commercial segment, reduced impairment of other intangible assets, lower interest expense and lower amortization of other intangible assets. These increases were partially offset by lower operating results in our Other and Consumer segments and increased income taxes resulting primarily from increased net income. For additional details, see Results of Operations Nine Months Ended September 30, 2010 Compared to the Nine Months Ended September 30, 2009 included in this MD&A. Our fully-diluted EPS was $5.52 for the nine months ended September 30, 2010, which represents a 34% increase over the EPS of $4.12 for the nine months ended September 30, 2009. The increase in EPS resulted primarily from both the lower number of shares outstanding in 2010 due to share buy back activity under our share repurchase program and increased net income.
Operating cash flow for the nine months ended September 30, 2010 was $829.7 million, and included a $1.2 billion tax payment in March 2010 to the Internal Revenue Service, or IRS, related to the gain we realized on our PBM sale on December 1, 2009. Operating cash flow for the nine months ended September 30, 2009 was $3.0 billion, or 1.5 times net income. The decrease in operating cash flow from 2009 was driven primarily by the $1.2 billion tax payment, increased incentive compensation payments in 2010, claims run out from the membership transfers in Texas and Illinois and a reduction in Medicare Part D LIS enrollment, in 2010.
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