Summary
Elevance Health, Inc. (formerly Anthem, Inc.) reported solid financial results for the nine months ended September 30, 2018. Total operating revenue increased by 2.1% to $68,037 million, driven by higher premium revenue, particularly in the Government Business segment, and increased administrative fees in the Commercial & Specialty Business segment. Net income saw a significant increase of 27.3% to $3,325 million. This growth was primarily attributed to improved operating results in both major business segments, bolstered by the positive impact of acquisitions in the Medicare Advantage space and a lower effective tax rate following the Tax Cuts and Jobs Act. Diluted earnings per share also rose substantially by 29.7% year-over-year. Despite an overall increase in revenue and net income, operating cash flow for the nine months decreased by $2,122 million compared to the prior year. This decline was attributed to factors including lower cash receipts from ACA premium stabilization programs, increased investments in growth initiatives, and membership declines in certain segments. The company continues to actively manage its capital through share repurchases and dividend payments, demonstrating a commitment to shareholder returns while navigating a complex regulatory and market environment.
Financial Highlights
53 data points| Revenue | $23.25B |
| Cost of Revenue | $0 |
| Gross Profit | $23.25B |
| SG&A Expenses | $3.55B |
| Operating Income | $1.25B |
| Interest Expense | $188.00M |
| Net Income | $960.00M |
| EPS (Basic) | $3.70 |
| EPS (Diluted) | $3.62 |
| Shares Outstanding (Basic) | 259.50M |
| Shares Outstanding (Diluted) | 265.40M |
Key Highlights
- 1Total operating revenue increased by 2.1% to $68,037 million for the nine months ended September 30, 2018.
- 2Net income increased by a significant 27.3% to $3,325 million for the nine months ended September 30, 2018.
- 3Diluted earnings per share (EPS) grew by 29.7% to $12.58 for the nine months ended September 30, 2018.
- 4The Government Business segment showed strong revenue growth of 13.1%, driven by Medicare business expansion.
- 5The effective tax rate decreased due to the Tax Cuts and Jobs Act, positively impacting net income.
- 6Operating cash flow decreased by $2,122 million for the nine months ended September 30, 2018, primarily due to ACA-related programs and growth investments.
- 7The company acquired America's 1st Choice and HealthSun, contributing to Medicare Advantage membership growth.