Research on Humana and WellPoint: Healthcare Industry Prepares for Reforms

  Research on Humana and WellPoint: Healthcare Industry Prepares for Reforms

  PR Newswire

  LONDON, February 15, 2013

LONDON, February 15, 2013 /PRNewswire/ --

Healthcare industry is one of the most watched industrial sectors. With the
upcoming healthcare regulations, the companies will need to restructure their
businesses to ensure their long-term viability. However, some companies like
WellPoint Inc. (NYSE: WLP) are better placed to withstand the new changes. The
industry will see a paradigm shift under the new healthcare reforms. One of
such changes pertains to the creation of health insurance exchanges. As many
as 18 states are planning to establish such exchanges by 2014. Leading
healthcare company Humana Inc. (NYSE: HUM) is planning to participate in the
program in 10 states. StockCall has posted free technical research reports on
Humana and WellPoint and these can be accessed by signing up at

WellPoint Appoints New CEO

WellPoint recently made a major management change and appointed Joseph Swedish
as its new CEO. The appointment is being seen as a strategy change by industry
analysts. It seems that WellPoint may be following the lead of other industry
giants to enter into the medical care segment. If the company is indeed
looking to jump into the medical care segment, then it will be a big change in
its direction. It may also provide an opportunity for WellPoint to add
synergistic services to its business. WellPoint Inc. technical report can be
accessed for free by signing up at

WellPoint appreciated over 3 percent this year. It is expected to perform well
in the wake of impending changes to the healthcare sector. However, the
company provided value to its investors by buying back its stock. During its
fiscal fourth quarter, the company repurchased $668 million worth of its
stock, while it spent $2.5 billion in the full year for buyback purposes. In
addition, the company also offers nearly 2 percent dividend yield.

The company is well positioned to benefit from the new regulations. It is one
of the largest healthcare providers in the country. It also enhanced its
position by acquiring Amerigroup. The healthcare company is serious in its
efforts to grow and also acquired 1-800 CONTACTS in 2012. It reported its
fourth quarter net income at $1.03 per share while its full year net income
stood at $7.56 a piece.

Humana Reports Quarterly Results

Humana Inc. posted lower net income for its fourth quarter but it surpassed
estimates. At $1.19 per share, Humana's net income per share beat estimates of
$1.07 in net income per share. Its revenue for the quarter increased to $9.56
billion. Despite revenue increase, the company failed to meet the expectations
for this metrics. Download the free report on Humana Inc. upon registration at

Humana's stock grew over 13 percent in the past 52 weeks and is expected to
perform well as the company presented a good outlook for its fiscal first
quarter. The company is expected to earn between $1.44 and $1.53 per share in
the first quarter.

Humana is also gearing to adapt itself to new changes being brought about in
the industry, pursuant to healthcare reforms. It is currently in the process
of determining its modus operandi for health insurance exchanges. A per
company management, Humana is planning to enter the exchange mechanism in ten

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