For Immediate Release
Chicago, IL – January 28, 2010 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: WellPoint, Inc. (WLP), Express Scripts, Inc (ESRX), United Technologies Corporation (UTX), General Electric Company (GE) and Honeywell International Inc (HON).
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Here are highlights from Wednesday’s Analyst Blog:
WellPoint Beats Zacks Estimate
WellPoint, Inc. (WLP) reported fourth quarter as well as full-year results for fiscal 2009.
The company earned $1.16 per share in the fourth quarter as opposed to $1.34 in the year-ago quarter. The Zacks Consensus Estimate for the quarter was $1.02. For the full-year 2009, Well Point earned $6.09 which was above the year-ago earnings of $5.48 and the Zacks Consensus Estimate of $5.91.
Total operating revenues for the quarter came in at approximately $15.1 billion as opposed to $15.4 billion in the year-ago quarter. The decrease was primarily attributable to lower fully insured enrollment in 2009, partially offset by the rise in premium rate. Total operating revenues for 2009 came in at approximately $60.83 billion as opposed to $61.58 billion in 2008.
Operating gains for the Commercial Business segment decreased 56.5% to $316.8 million in the reported quarter. The decline was due to restructuring costs incurred by WellPoint in addition to a reduction in fully insured enrollment and an increase in the benefit expense ratio for the Local Group business. Operating gains for the Consumer Business segment fell 32.6% to $158.9 million in the quarter. The Other segment reported a 15.7% year-over-year increase in operating gains.
The health insurer completed the sale of NextRx subsidiaries to Express Scripts, Inc (ESRX) on Dec 1, 2009 and received consideration of $4.7 billion from the transaction and recognized a pre-tax gain on the sale totaling $3.8 billion in the reported quarter.
UTX Beats by a Penny
United Technologies Corporation (UTX) reported fourth quarter 2009 earnings per share of $1.15, down 7% over the year-ago quarter. Results for the current quarter include an $0.08 per share charge for restructuring costs net of one-time items. This is ahead of Zacks Consensus Estimate of $1.14 per share.
Consolidated revenues for the quarter of $14.1 billion were 5% below the prior year, including 6 points of organic decline and 1 point of net divestitures, offset by 3 points of favorable foreign currency translation. Segment operating margin at 13.7% was 110 basis points higher than in the prior year.
Restructuring and other charges for the quarter were $135 million, bringing the full year to $830 million. For the year, restructuring and other charges were $0.46 of earnings per share, net of one-time gains.
Share repurchase in the quarter was $320 million and totaled $1.1 billion for the year. Acquisition spending was $703 million for the year with $146 million in the fourth quarter.
Cash and equivalents were $4.4 billion with long-term debt at $8.2 billion and shareowners’ equity at $20 billion.
The company expects order rates will keep pressure on its top line, particularly in the first half of 2010, and anticipates that benefits from structural cost actions will allow it to deliver earnings growth of 7% to 13% with 2010 earnings per share of $4.40 to $4.65.
United Technologies Corp., based in Hartford, Connecticut, is a diversified company providing high technology products and services to the building and aerospace industries. Major competitors include General Electric Company (GE) and Honeywell International Inc (HON).
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