Summary
Elevance Health, Inc. (formerly WellPoint, Inc.) reported its first-quarter 2012 financial results, showcasing a 3.4% increase in total operating revenue to $15.15 billion, primarily driven by growth in its Consumer segment, particularly Medicare Advantage, and higher premium rates in its Commercial segment. Despite revenue growth, net income saw a 7.6% decrease to $856.5 million compared to the prior year, attributed to decreased operating results in the Commercial and Other segments, partly offset by improved Consumer segment performance and lower income taxes. Diluted Earnings Per Share (EPS) increased slightly by 3.7% to $2.53, benefiting from a reduced share count due to ongoing share repurchase programs. The company experienced a slight overall decline in medical membership by 1.5%, with decreases in Local Group and National Accounts offset by growth in Senior and State-Sponsored segments. Cost of care trends remained a key focus, with an estimated medical cost trend of 7.0% for the rolling twelve months ended March 31, 2012. Management highlighted ongoing efforts in cost management, provider contracting, and value-based care initiatives. The company maintained a strong liquidity position, with $21 billion in cash, cash equivalents, and investments, and a consolidated debt-to-capital ratio of 28.7%.
Financial Highlights
52 data points| Revenue | $15.42B |
| Cost of Revenue | $0 |
| Gross Profit | $15.42B |
| SG&A Expenses | $2.17B |
| Operating Income | $1.21B |
| Interest Expense | $109.10M |
| Net Income | $856.50M |
| EPS (Basic) | $2.56 |
| EPS (Diluted) | $2.53 |
| Shares Outstanding (Basic) | 335.00M |
| Shares Outstanding (Diluted) | 339.00M |
Key Highlights
- 1Total operating revenue increased by 3.4% to $15.15 billion, driven by premium revenue growth in the Consumer segment (Medicare Advantage) and rate increases in the Commercial segment.
- 2Net income decreased by 7.6% to $856.5 million, mainly due to lower operating results in the Commercial and Other segments.
- 3Diluted EPS rose by 3.7% to $2.53, aided by a lower share count resulting from share repurchases.
- 4Total medical membership declined by 1.5% to 33.67 million, with growth in Senior and State-Sponsored segments partially offsetting declines in Local Group and National Accounts.
- 5The estimated medical cost trend for the rolling twelve months ended March 31, 2012, was 7.0% (± 0.5%), with unit costs being a primary driver.
- 6Elevance Health maintained robust liquidity, with $21.0 billion in cash, cash equivalents, and investments as of March 31, 2012.
- 7The company's debt-to-capital ratio was 28.7% as of March 31, 2012, indicating a manageable leverage position.