INDIANAPOLIS (AP) - WellPoint Inc.'s second-quarter net income jumped 24 percent as an acquisition boosted revenue and a lower-than-expected increase in medical costs helped the nation's second-largest health insurer.
INDIANAPOLIS (AP) — WellPoint Inc.'s second-quarter net income jumped 24 percent as an acquisition boosted revenue and a lower-than-expected increase in medical costs helped the nation's second-largest health insurer.
The performance topped Wall Street's earnings expectations and prompted the insurer to raise its forecast for 2013.
The Indianapolis company earned $800.1 million, or $2.64 per share, in the three months that ended June 30. That's up from $643.6 million, or $1.94 per share, a year ago.
Operating revenue soared 16 percent to $17.6 billion. That excludes investment gains or losses.
Adjusted earnings were $2.60 per share.
Analysts expected $2.08 per share on $17.81 billion in revenue, according to FactSet.
WellPoint said its enrollment climbed more than 6 percent to about 35.7 million people, thanks to last year's $4.46 billion acquisition of Medicaid coverage provider Amerigroup Corp. The roughly 2.6 million members it gained in that deal helped counter declines in the insurer's commercial and Medicare businesses.
WellPoint now expects full-year earnings of at least $8 per share, not counting one-time items like investment gains or losses. That's up from its previous forecast for $7.80 per share.
Analysts expect, on average, earnings of $8.03 per share.
WellPoint ranks second in size to UnitedHealth Group Inc., which also reported enrollment gains and a better-than-expected second-quarter performance last week.