Shares in WellCare Health Plans plummeted nearly 20 percent Friday after the Tampa managed care company released second-quarter earnings and lowered expectations for the remainder of the year.
WellCare, which provides services for government-sponsored Medicaid and Medicare programs, reported a second quarter net loss of $7.5 million, or $0.17 per diluted share, compared with net income of $46.9 million, or $1.07 per diluted share, for the year-ago period.
Looking ahead, the company projected net income per share for the year would be between $2.20 and $2.50. Its previous range was between $4.40 and $4.75 per diluted share.
"We are disappointed in the second quarter results and the revised 2014 outlook," said Dave Gallitano, WellCare`s chairman of the board and CEO. He gave multiple reasons for the shortfall, including high expenses tied to the rollout of Florida Medicaid's statewide managed care program.
Early Friday, the stock was trading at five times normal volume. Wellcare shares closed at $61.61 apiece, down $15.24, or 19.8 percent. Trading was five times normal volume.