Summary
Elevance Health (formerly WellPoint) reported a strong second quarter of 2013, demonstrating significant revenue growth and improved net income compared to the prior year. Total operating revenue increased by 16.0% to $17.6 billion, primarily driven by the acquisition of Amerigroup and premium rate increases in its Government and Commercial businesses. Net income saw a substantial increase of 24.3% to $800.1 million, resulting in a diluted EPS of $2.64, up from $1.94 in the prior year period. This growth was fueled by higher operating results across both government and commercial segments, despite increased interest expenses related to the Amerigroup acquisition. The company continues to manage its capital effectively through share repurchases and dividend payments, indicating a focus on shareholder returns while investing in growth. Key financial strengths include a robust operating revenue increase supported by strategic acquisitions and pricing adjustments. The company also managed to improve its net income and EPS, showcasing operational efficiency. Despite a decrease in net investment income, the overall financial performance highlights the company's resilience and ability to navigate market dynamics. Investors can take comfort in the positive growth trajectory and the company's commitment to shareholder value, though ongoing integration costs and market pressures remain factors to monitor.
Financial Highlights
53 data points| Revenue | $17.69B |
| Cost of Revenue | $62.40M |
| Gross Profit | $17.63B |
| SG&A Expenses | $2.44B |
| Operating Income | $1.22B |
| Interest Expense | $151.90M |
| Net Income | $800.10M |
| EPS (Basic) | $2.67 |
| EPS (Diluted) | $2.64 |
| Shares Outstanding (Basic) | 299.50M |
| Shares Outstanding (Diluted) | 303.20M |
Key Highlights
- 1Total operating revenue increased 16.0% year-over-year to $17.6 billion.
- 2Net income rose 24.3% to $800.1 million.
- 3Diluted Earnings Per Share (EPS) increased to $2.64 from $1.94 in the prior year quarter.
- 4The Government Business segment saw significant revenue growth (45.6%) driven by the Amerigroup acquisition.
- 5Commercial and Specialty Business revenue saw a slight decrease of 0.3%, but operating gain increased by 8.1% due to improved medical cost management.
- 6The company repurchased approximately 3.7 million shares of common stock for $275.3 million during the quarter.
- 7Consolidated debt-to-capital ratio was 37.7% at June 30, 2013, slightly above the target range, primarily due to financing the Amerigroup acquisition.