Saturday, August 3, 2013

WLP, AIG, KCLI and CVX Earnings

More earnings releases from my holdings:

Wellpoint (WLP) reported Q2 earnings of $2.64 and raised the year's earnings forecast to $8.00. Since the news, the stock has barely budged at around $85. In their conference call, they emphasized they are expecting excellent growth in their medicare business because of Obamacare. Overall, management expects revenue to grow from the current $71B to $90B by 2016, in no small part due to Obamacare! This is the first quarter under the new CEO Joe Swedish. I liked hearing his plans to squeeze more efficiency out of the company.

AIG reported quarterly earnings of $1.12. AIG stock jumped to $48.33 on the news. AIG book value is $66 per share. In the earnings release, the company generated a lot of press when it declared a $0.10 dividend. This marks a milestone as this is the first time AIG returned capital to shareholders since the bleak days when it was bailed out.

Kansas City Life Insurance (KCLI) reported earnings of $0.98 for Q2 2013. They earned $1.45 for the half year. The stock trades at $42.88 which is only about 2/3 of book value. The stock has risen about 15% since I first wrote about it and bought. I am waiting the stock price to inch closer to book.

Chevron (CVX) reported Q2 earnings of $2.77 per share versus $3.66 a year ago. Earnings for the half year is $5.95 per share versus $6.93 a year ago. The company is diversifying into natural gas. The company needs new sources of revenue. This is just the volatile business of energy (or any other resource). CVX is one of my oldest holdings and I am not concerned about the earnings blip.

No comments:

Post a Comment