WELLPOINT PROFITS UP 21 PERCENT HMO THRIVES VIA EXPANSION.

Byline: Evan Pondel Staff Writer

WellPoint Health Networks Inc. posted a 21 percent rise in first-quarter earnings Wednesday, matching the high-end of Wall Street's estimates following a boost in membership for the managed care company.

The Thousand Oaks-based group reported net income for the first quarter of $96.5 million, or $1.48 per share, compared to net income of $79.6 million, or $1.23 per share, for the same period a year ago.

``It was a very good quarter and the expectations were really high,'' said Rob Plaza, an analyst with Morningstar. ``This reinforces that their cost controls are strong and they're taking market share away from the competition.''

WellPoint's membership for medical plans rose from 7.5 million a year ago to 9.8 million by the end of the first quarter 2001.

The jump in membership was a result of WellPoint's acquisition on March 15 of Cerulean Cos. Inc., the parent of Blue Cross Blue Shield of Georgia.

WellPoint's revenues in the quarter leaped almost 22 percent to $2.62 billion from $2.15 billion from the same quarter a year ago.

Though WellPoint's robust earnings highlight the company's ability to stay afloat in a downtrodden economy, the managed care sector has outperformed other industries.

``All the companies in managed care are doing well,'' Plaza said. ``WellPoint's results are just a continuation of what has gone on for the last six quarters.''

At Wednesday's close, shares of WellPoint gained $5.94, or 6.7 percent, to 94.15 on the New York Stock Exchange.

Among other companies reporting earnings Wednesday:

--Camarillo-based electronic component maker Power-One Inc. on Wednesday announced first quarter net income of $16.4 million, or 20 cents per share, on revenue of $169.9 million, compared to a net loss of $1.5 million, or 2 cents per share, on revenue of $77 million in the same period a year ago.

--USA Networks, which also owns Ticketmaster, Citysearch and the Home Shopping Network, reported a net loss of $26.6 million compared with $7.1 million in the same quarter a year ago. The loss per share fell to 5 cents from 7 cents, beating the forecast of 17 cents per share, according to Thomson Financial/First Call.

--Halliburton Co., the oil field services company formerly led by U.S. Vice President Dick Cheney, reported net operating income jumped to $86 million, or 20 cents per share, from $27 million, or 6 cents per share a year earlier. Net profit was 25 cents a share, down from 59 cents a share, or $264 million, a year earlier.

--Consumer goods giant Sara Lee Corp. earned $241 million, or 28 cents a share, for its third fiscal quarter ended March 31, down from $262 million, or 29 cents a share, a year earlier.

--First-quarter net earnings at Anheuser-Busch, the world's largest brewer, rose 13 percent, for the company's 10th consecutive quarter of double-digit earnings per share growth. For the quarter ending March 31, Anheuser-Busch reported net income of $394.4 million, or 43 cents per diluted share.

--After stripping out one-time gains and charges, Daimler-Chrysler lost $328 million, or 33 cents per share. That was less than the 47-cent-per-share loss expected by analysts surveyed by Thomson Financial/First Call.

--Drug makers American Home Products Corp. and Bristol-Myers Squibb Co. posted healthy first-quarter profits Wednesday that surpassed Wall Street's expectations, citing strong growth in prescription medicine sales.

--Wireless technology firm Qualcomm Inc. earned $149.1 million, or 18 cents per share, in its second quarter ending April 1. That compares with $199.7 million, or 25 cents in the year-ago period.