Tomahawk, WI 10/24/2013 (BasicsMedia) – WellPoint, Inc. (NYSE:WLP) remains one of the best providers of affiliated health plans that serve close to 34.5 million medical members in the U.S. This $25.56 billion market cap company also serves 65.3 million people through its numerous subsidiaries with its health benefit plans. It performs its company operations through three divisions; Consumer, Commercial and Other. WLP’s third quarter of 2013 financial results has been published in which the company has beaten analysts expectations, but mostly where adjusted earnings are concerned.

WLP’s Third Quarter Profits Fall

WLP’s profits for the third quarter of 2013 have dipped by close to 5% compared to the same period in 2012. Its adjusted earnings for the quarter were much better than expected. It is worth mentioning that the company collected more than $17.73 billion as revenue for this period, which is an increase or 17% compared to the same period a year ago. This amount was slightly more than the $17.66 billion Wall Street analysts were expecting WLP to post during the quarter. This news helped WLP stock to shoot up ever since the results were announced.

WLP continues to see increased enrollment with each passing year. It currently boasts of more than 35.5 million members, which represents an increase of around 2 million compared to the same period in 2012. This increased membership is partly due to WLP’s recent acquisition of Amerigroup. There has been a drop in membership because of certain aspects of WLP’s business. Medicaid membership witnessed an increase during the third quarter, while Medicare and Commercial business witnessed drop in enrollment during the same period in 2013.

WLP Adjusts its Earnings Per Share for 2013

WLP has adjusted its earnings per share for the rest of 2013 bearing in mind the shortfall in membership and enrollment into some of its products, or those that are associated with WellPoint. Furthermore, WLP has announced that it expects to collect revenue for 2013 that will be between $70 billion and $72 billion. It expects medical enrollment for the remainder of 2013 to improve from its current level of 35.5 million and settle at around .5.6 million by the end of the year. WLP can meet all these targets through many hard work and innovative ideas.

WLP’s board has declared fourth quarter dividends of around 37.5 cents for every share held. All shareholders on record as of December 9, 2013 will be entitled to this dividend by December 23, 2013. WLP paid the same amount as dividend during the third quarter of 2013, and I think it may maintain this level probably into the next two quarters unless something drastic happens to change the whole situation. WLP has embarked on a share buying back spree that has seen it purchasing close to 6.5 million shares for $554.9 million during the third quarter.

WLP can still buy back shares worth up to $4.2 billion, which the board has already approved. It has great potential in the medical field and as long as WLP keeps working hard to increase its membership, I see it continuing to perform better than expected by Wall Street analysts. It can turn around the drop in profits and see a huge improvement in this aspect as well.

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