Summary
Elevance Health (formerly WellPoint) reported solid financial results for the first quarter of 2011. The company saw an increase in net income to $926.6 million, up 6% year-over-year, leading to a diluted EPS of $2.44, a 24% increase. This growth was driven by improved operating results in the Commercial and Other segments, despite a slight decrease in total operating revenue which fell 1% to $14.65 billion, largely due to the conversion of some large accounts from fully-insured to self-funded plans. The company also demonstrated strong operational cash flow, generating $1.11 billion. Significant share repurchase activity contributed to the EPS growth, with approximately $741.6 million spent on repurchases during the quarter. Elevance Health maintains a strong financial position with $20.7 billion in cash, cash equivalents, and investments.
Financial Highlights
50 data points| Revenue | $14.89B |
| SG&A Expenses | $2.08B |
| Operating Income | $1.35B |
| Interest Expense | $105.90M |
| Net Income | $926.60M |
| EPS (Basic) | $2.48 |
| EPS (Diluted) | $2.44 |
| Shares Outstanding (Basic) | 374.00M |
| Shares Outstanding (Diluted) | 379.30M |
Key Highlights
- 1Net income increased by 6% to $926.6 million compared to the prior year's first quarter.
- 2Diluted EPS rose significantly by 24% to $2.44, aided by a reduced share count from ongoing buybacks.
- 3Total operating revenue saw a slight decrease of 1% to $14.65 billion, mainly impacted by membership shifts to self-funded plans.
- 4Operating cash flow was robust, reaching $1.11 billion for the quarter.
- 5The company repurchased approximately $741.6 million of its common stock during the quarter, highlighting a commitment to capital return.
- 6Consolidated cash, cash equivalents, and investments totaled $20.7 billion as of March 31, 2011, indicating strong liquidity.
- 7The Commercial segment showed improved operating gain, up 15%, despite a revenue decline.