Summary
Elevance Health, Inc. (ELV) reported strong financial performance for the period ending June 30, 2018. Total operating revenue increased by 2.3% to $22.7 billion for the quarter and 1.2% to $45.1 billion for the first six months of the year, driven by higher premium revenue in the Government Business segment and increased administrative fees. Net income saw a significant increase of 23.2% to $1.05 billion for the quarter and 26.8% to $2.37 billion for the first six months. Diluted EPS also rose substantially by 25.9% and 30.2% respectively for the same periods. The company experienced a decrease in overall medical membership by 2.2% to approximately 39.5 million members, primarily due to reduced participation in ACA-compliant marketplaces and declines in fully-insured and Medicaid businesses. However, Medicare membership grew by 17.1%, boosted by acquisitions and organic growth. The company also announced the establishment of a new PBM, IngenioRx, in partnership with CVS Health, set to begin operations in 2020. Financially, the company maintained a solid position with $24.7 billion in cash, cash equivalents, and investments. Operating cash flow was $2.76 billion for the six months ended June 30, 2018. Elevance Health continued its capital return program through share repurchases and dividend payments, reflecting confidence in its ongoing financial health and strategic initiatives.
Financial Highlights
53 data points| Revenue | $22.94B |
| Cost of Revenue | $0 |
| Gross Profit | $22.94B |
| SG&A Expenses | $3.43B |
| Operating Income | $1.56B |
| Interest Expense | $192.00M |
| Net Income | $1.05B |
| EPS (Basic) | $4.07 |
| EPS (Diluted) | $3.98 |
| Shares Outstanding (Basic) | 258.70M |
| Shares Outstanding (Diluted) | 264.50M |
Key Highlights
- 1Total operating revenue increased to $22.7 billion in Q2 2018 and $45.1 billion year-to-date, driven by growth in the Government Business segment and administrative fees.
- 2Net income grew significantly by 23.2% year-over-year for the quarter to $1.05 billion and by 26.8% year-over-year for the first six months to $2.37 billion.
- 3Diluted EPS increased by 25.9% to $3.98 for the quarter and by 30.2% to $8.97 for the first six months, reflecting improved profitability.
- 4Overall medical membership decreased by 2.2% to 39.5 million, largely due to reduced participation in ACA marketplaces, but Medicare membership saw a strong increase of 17.1%.
- 5The company announced the formation of a new Pharmacy Benefit Manager (PBM) called IngenioRx, with a partnership with CVS Health commencing in 2020.
- 6Consolidated cash, cash equivalents, and investments totaled $24.7 billion as of June 30, 2018, indicating a strong liquidity position.
- 7The company actively returned capital to shareholders through dividends totaling $388.3 million for the six months and share repurchases of $795.0 million for the six months ended June 30, 2018.