Summary
Elevance Health, Inc. (ELV) reported solid revenue growth for the nine months ended September 30, 2016, with total operating revenue increasing by 7.4% year-over-year to $62.7 billion. This growth was primarily driven by higher premium revenues, particularly in the Government Business segment, and increased administrative fees. However, net income saw a decline of 11.7% for the same period, reaching $2.1 billion. This decrease was influenced by higher benefit expenses due to increased medical costs and membership growth, as well as costs associated with the pending acquisition of Cigna Corporation and increased interest expenses. The company also experienced a decrease in net income for the third quarter of 2016 compared to the prior year, reflecting similar pressures from rising benefit expenses and acquisition-related costs. Despite the dip in net income, the company's medical membership grew by 3.1% year-over-year, driven by strong performance in Medicaid and National Accounts. Investors should note the ongoing regulatory scrutiny and litigation surrounding the proposed Cigna acquisition, which could impact future strategic decisions and financial performance.
Financial Highlights
51 data points| Revenue | $21.40B |
| SG&A Expenses | $3.12B |
| Operating Income | $1.08B |
| Interest Expense | $172.90M |
| Net Income | $617.80M |
| EPS (Basic) | $2.35 |
| EPS (Diluted) | $2.30 |
| Shares Outstanding (Basic) | 263.20M |
| Shares Outstanding (Diluted) | 268.10M |
Key Highlights
- 1Total operating revenue increased by 7.4% to $62.7 billion for the nine months ended September 30, 2016, compared to the same period in 2015.
- 2Net income decreased by 11.7% to $2.1 billion for the nine months ended September 30, 2016.
- 3Medical membership grew by 3.1% to 39.9 million members as of September 30, 2016.
- 4Benefit expense increased by 10.0% for the nine months ended September 30, 2016, driven by higher medical costs and membership growth.
- 5The company is actively defending against a DOJ lawsuit seeking to block its proposed acquisition of Cigna Corporation, with trial expected to commence in November 2016.
- 6Selling, general and administrative expenses remained relatively flat for the nine-month period, indicating disciplined cost management.
- 7The company reported a decrease in diluted earnings per share (EPS) to $7.84 for the nine months ended September 30, 2016, down from $8.66 in the prior year.