Summary
Elevance Health, Inc. (ELV) reported strong performance for the fiscal year ended December 31, 2022, demonstrating resilience and strategic growth. The company experienced a significant increase in total operating revenue, primarily driven by robust membership growth in its Government Business segment, particularly within Medicaid, bolstered by the temporary suspension of eligibility recertifications due to the COVID-19 pandemic. Acquisitions in the Medicaid space also contributed positively to revenue. While net income saw a slight decrease year-over-year, largely due to realized losses on financial instruments and increased amortization, the company maintained a strong operating gain across all segments. Elevance Health continues to focus on its transformation into a lifetime, trusted health partner, expanding its brand portfolio and optimizing its business operations. The company also highlighted its commitment to shareholder returns through share repurchases and dividends, underpinned by solid liquidity and capital resources. Looking ahead, Elevance Health is strategically positioned to benefit from ongoing healthcare trends, including potential growth in the individual exchange market as Medicaid eligibility recertifications resume. The company's diversification across commercial, government, and specialty segments, coupled with its integrated capabilities in pharmacy benefits management (CarelonRx) and health services (Carelon Services), provides a solid foundation for future expansion and profitability. Investors should monitor the company's integration of recent acquisitions and its continued progress in achieving its 'whole health' strategy.
Financial Highlights
53 data points| Revenue | $156.59B |
| Cost of Revenue | $13.04B |
| Gross Profit | $143.56B |
| SG&A Expenses | $17.70B |
| Operating Income | $8.28B |
| Interest Expense | $851.00M |
| Net Income | $5.89B |
| EPS (Basic) | $24.56 |
| EPS (Diluted) | $24.28 |
| Shares Outstanding (Basic) | 240.00M |
| Shares Outstanding (Diluted) | 242.80M |
Key Highlights
- 1Total operating revenue increased by 13.7% to $155.66 billion in 2022, driven by membership growth, particularly in Medicaid and Medicare Advantage plans, and strategic acquisitions.
- 2Total medical membership increased by 4.8% to 47.5 million, primarily due to organic growth in Government Business (Medicaid and Medicare Advantage) and Commercial & Specialty Business.
- 3Net income slightly decreased by 1.2% to $6.02 billion, impacted by realized losses on financial instruments and increased amortization, but operating gain remained strong across segments.
- 4Elevance Health announced plans to organize its brand portfolio into three core go-to-market brands: Anthem Blue Cross/Anthem Blue Cross and Blue Shield, Wellpoint, and Carelon, reflecting its evolution.
- 5The company completed several acquisitions in 2022, including Integra (managed long-term care) and entered into an agreement to acquire Louisiana Health Service & Indemnity Company (Blue Cross Blue Shield of Louisiana) in early 2023, demonstrating a continued focus on strategic growth.
- 6Diluted Earnings Per Share (EPS) increased slightly by 0.3% to $24.81, benefiting from a reduction in average diluted shares outstanding.
- 7The company maintained a strong liquidity position with consolidated cash, cash equivalents, and investments totaling $35 billion at year-end 2022.