Summary
Elevance Health, Inc. (formerly Anthem, Inc.) reported solid financial results for the third quarter and first nine months of 2017. Total operating revenue saw a notable increase, driven by higher premium revenues in both the Government and Commercial & Specialty Business segments. Net income also showed significant year-over-year growth, attributed to lower income tax expenses (largely due to the suspension of the Health Insurance Provider Fee) and improved investment income. The company continued to focus on strategic growth, announcing two acquisitions in the Medicare Advantage space: HealthSun Health Plans, Inc. and America's 1st Choice. These align with Elevance Health's strategy to expand its presence in these key markets. Despite some headwinds, such as a decrease in operating gain for the Commercial & Specialty Business segment, the overall financial performance and robust operating cash flow indicate a company managing its operations effectively while pursuing strategic expansion.
Financial Highlights
51 data points| Revenue | $22.43B |
| SG&A Expenses | $3.01B |
| Operating Income | $982.00M |
| Interest Expense | $150.00M |
| Net Income | $747.00M |
| EPS (Basic) | $2.87 |
| EPS (Diluted) | $2.80 |
| Shares Outstanding (Basic) | 260.50M |
| Shares Outstanding (Diluted) | 267.00M |
Key Highlights
- 1Total operating revenue increased by 4.6% for the three months ended September 30, 2017, reaching $22.1 billion, driven by higher premiums.
- 2Net income rose by 20.9% to $746.9 million for the three months ended September 30, 2017, compared to the prior year period.
- 3Diluted EPS increased by 21.7% to $2.80 for the three months ended September 30, 2017.
- 4Operating cash flow significantly increased by $2.5 billion to $5.5 billion for the nine months ended September 30, 2017.
- 5The company announced two strategic acquisitions in the Medicare Advantage market: HealthSun Health Plans and America's 1st Choice.
- 6The Health Insurance Provider (HIP) Fee was suspended for 2017, leading to a significant reduction in income tax expense and an improvement in the effective tax rate.
- 7Total medical membership grew by 0.9% to 40.3 million members as of September 30, 2017, primarily driven by increases in Local Group and Medicare membership.