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As a subscriber you can listen to articles at work, in the car, or while you work out. Subscribe NowWellPoint Inc. CEO Angela Braly predicts that the health insurer’s profit per share will grow 1 percent to 3 percent this year.
That means Indianapolis-based WellPoint’s profit would come in between $5.53 and $5.64 per share – below the expectations of Wall Street analysts, who have predicted WellPoint would earn $5.68 per share, according to a survey by Thomson Financial.
Braly’s prediction, given this morning to a meeting of investors, was based on 2008 earnings per share of $5.48, which excluded some one-time charges such as investment losses and an income tax benefit.
The growth prediction is far lower than the 15-percent growth WellPoint has predicted for several consecutive years.
However, in 2008, WellPoint’s forecast proved way off, as profit fell 14 percent. The company stunned investors nearly a year ago when it said it had misread the growth of medical expenses and therefore had underpriced its policies.
In September, WellPoint’s stock price swooned again when the meltdown on Wall Street stung it with investment losses that totaled about $1 billion for the year.
Shares of WellPoint fell 52 percent in 2008. So far this year, the shares have fallen nearly 7 percent, closing at $39.32 each yesterday.
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