Wellpoint’s profits soar

Wellpoint Inc., the Indianapolis-based parent company of Anthem Blue Cross & Blue Shield, today reported second quarter net income of $800.1 million, or $2.64 per share, up from $643.6 million, or $1.94 per share, in the same period a year ago.

The company’s quarterly revenues grew to $17.8 million from $15.4 million a year earlier.

“We are pleased with our second quarter results and encouraged by the positive momentum we have across the organization. Our Commercial businesses continue to perform well and we have achieved improvements in our Medicaid operations, largely reflecting benefits from the Amerigroup transaction,” said Joseph Swedish, Wellpoint’s chief executive officer. “Looking ahead, we continue to actively prepare for the coming marketplace changes, and believe we are well-positioned for the significant growth opportunities on the horizon. We’re also seeing improving trends in the Local Group and National Account ASO markets, and expect membership growth from those areas next year.”

“Our quarterly results were ahead of our forecast and supported by higher than expected operating cash flow, a strong balance sheet and stability in the operating environment. We have modestly raised our full year EPS and operating cash flow outlooks, reflecting our strong year-to-date performance. However, we are still being prudent given our continued expectation for a fluid environment and investment spending over the second half of the year as we prepare for 2014,” said Wayne DeVeydt, executive vice president and chief financial officer. 

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