Summary
Elevance Health, Inc. (ELV) reported robust financial performance for the first quarter of 2015, with total operating revenue reaching $18.9 billion, a 6.8% increase year-over-year. This growth was primarily driven by a significant rise in premium revenue within its Government Business segment, bolstered by increased membership in Medicaid and the recent acquisition of Simply Healthcare. Net income also saw a substantial increase of 23.4% to $865.2 million, translating to a diluted EPS of $3.09, up from $2.40 in the prior year quarter. This EPS growth was further supported by an effective share repurchase program. The company demonstrated strong operational cash flow generation of $1.65 billion, a 19% increase from the prior year, reflecting improved premium receipts and membership growth. Strategically, Elevance Health completed the acquisition of Simply Healthcare, strengthening its position in the government sector, and continued to manage its capital effectively through share repurchases and dividend payments. Despite a sophisticated cyber attack in February 2015, the company reported no material impact on its financial condition or results of operations from this incident to date, though ongoing expenses are anticipated.
Financial Highlights
50 data points| Revenue | $19.05B |
| SG&A Expenses | $3.15B |
| Operating Income | $1.58B |
| Interest Expense | $154.40M |
| Net Income | $865.20M |
| EPS (Basic) | $3.25 |
| EPS (Diluted) | $3.09 |
| Shares Outstanding (Basic) | 266.60M |
| Shares Outstanding (Diluted) | 280.40M |
Key Highlights
- 1Total operating revenue increased by 6.8% to $18.9 billion, driven by growth in the Government Business segment, particularly Medicaid.
- 2Net income rose by 23.4% to $865.2 million, resulting in diluted EPS of $3.09, a 28.8% increase year-over-year.
- 3Operating cash flow increased by 19% to $1.65 billion, indicating strong cash generation from operations.
- 4Acquisition of Simply Healthcare completed in February 2015, enhancing the company's presence in the Medicaid and Medicare markets.
- 5Medical membership grew by 4.3% to 38.5 million, primarily due to increases in Medicaid and BlueCard® membership.
- 6Selling, general, and administrative expenses increased by 9.9%, partly due to the Health Insurance Provider Fee (HIP Fee) and investments to support membership growth.
- 7The company reported no material impact on its financial performance from a cyber attack in February 2015, though ongoing investigation and remediation expenses are expected.