July 30 (Bloomberg) — WellPoint Inc., the second-biggest U.S. health insurer, boosted its annual profit forecast as the industry starts to see gains from customers buying its products through the Obamacare overhaul.
WellPoint raised its full-year adjusted earnings forecast by 20 cents, to $8.60 or more per share. Profit excluding one- time items was $2.44 per share, 18 cents more than expected by 22 analysts surveyed by Bloomberg, the Indianapolis, Indiana- based company said in a statement.
WellPoint made the biggest commitment of any publicly traded insurer to the Obamacare markets, accounting for 769,000 of 8 million enrollees under the Patient Protection and Affordable Care Act. Now investors are watching to see if the bet pays off, which largely depends on how healthy the new customers are and whether their costs are covered by premiums.
"WellPoint's second quarter results look solid across the board," said Chris Rigg, an analyst with Susquehanna Financial Group, in a note to clients today. "The company's revised 2014 guidance reflects stronger enrollment and continued cost controls."
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