Summary
Elevance Health, Inc. (formerly WellPoint, Inc.) reported solid revenue growth for the first six months of 2011, with total operating revenue increasing by 2% to $29.53 billion compared to the same period in 2010. This growth was primarily driven by premium rate increases and a rise in membership across various segments, particularly in national accounts, BlueCard, and senior plans. The company also saw an increase in net income to $1.63 billion, representing a 2% rise year-over-year, driven by improved operating results in the Commercial and Other segments, along with lower income taxes. Diluted Earnings Per Share (EPS) also saw a significant increase of 18% to $4.34, largely due to reduced share count from ongoing share repurchase programs. Despite overall positive trends, the Consumer segment experienced a notable decrease in operating gain due to higher medical costs and adverse selection in Medicare Advantage products, prompting a review of strategy for 2012. The company continued to manage its capital effectively through share repurchases and dividend declarations, with approximately $667.2 million remaining authorized for future repurchases as of June 30, 2011. The company also announced its intention to acquire CareMore Health Group, a senior-focused healthcare delivery program, signaling strategic expansion in the evolving healthcare landscape.
Financial Highlights
53 data points| Revenue | $15.10B |
| Cost of Revenue | $0 |
| Gross Profit | $15.10B |
| SG&A Expenses | $2.01B |
| Operating Income | $946.70M |
| Interest Expense | $103.60M |
| Net Income | $701.60M |
| EPS (Basic) | $1.92 |
| EPS (Diluted) | $1.89 |
| Shares Outstanding (Basic) | 366.10M |
| Shares Outstanding (Diluted) | 371.50M |
Key Highlights
- 1Total operating revenue for the first six months of 2011 increased by 2% to $29.53 billion, driven by premium increases and membership growth.
- 2Net income for the six months ended June 30, 2011 rose by 2% to $1.63 billion.
- 3Diluted Earnings Per Share (EPS) increased by 18% to $4.34 for the first six months of 2011, largely due to share repurchases.
- 4The Consumer segment's operating gain declined significantly due to increased medical costs in Medicare Advantage products.
- 5The company announced an agreement to acquire CareMore Health Group, focusing on senior healthcare delivery.
- 6Share repurchase programs continued, with $667.2 million remaining authorized for future repurchases as of June 30, 2011.
- 7Total medical membership increased by 2% to 34.19 million, with growth primarily in National Accounts and BlueCard segments.