Summary
Elevance Health (ELV), formerly Anthem, Inc., reported a strong first quarter for 2019, with total operating revenue increasing by 9.2% to $24.4 billion compared to the prior year's period. This growth was primarily driven by higher premium revenues in both the Government and Commercial & Specialty businesses, fueled by membership increases and strategic rate adjustments. Net income saw a significant jump of 18.2% to $1.55 billion, resulting in diluted earnings per share of $5.91, up from $4.99 in the same period last year. The company also benefited from the suspension of the Health Insurance Provider (HIP) Fee in 2019, which positively impacted net income and the effective tax rate. Despite a decrease in operating cash flow due to timing differences in Medicare prepayments and the HIP Fee suspension's impact on premium receipts, Elevance Health maintained a robust financial position. The company continued its capital return program through share repurchases and dividend payments, reflecting confidence in its ongoing operational performance and future outlook. Key strategic initiatives, such as the development of its PBM IngenioRx and the integration of the America's 1st Choice acquisition, are progressing, positioning the company for continued growth and market leadership in the healthcare sector.
Financial Highlights
52 data points| Revenue | $24.67B |
| Cost of Revenue | $0 |
| Gross Profit | $24.67B |
| SG&A Expenses | $3.17B |
| Operating Income | $1.94B |
| Interest Expense | $187.00M |
| Net Income | $1.55B |
| EPS (Basic) | $6.03 |
| EPS (Diluted) | $5.91 |
| Shares Outstanding (Basic) | 257.10M |
| Shares Outstanding (Diluted) | 262.30M |
Key Highlights
- 1Total operating revenue increased by 9.2% to $24.4 billion for the three months ended March 31, 2019, driven by membership growth and premium rate adjustments.
- 2Net income rose by 18.2% to $1.55 billion, leading to a diluted EPS of $5.91, an 18.4% increase year-over-year.
- 3The suspension of the Health Insurance Provider (HIP) Fee in 2019 favorably impacted the company's income tax expense and effective tax rate.
- 4Medical membership increased by 2.9% to 40.8 million, with significant growth observed in Medicare Advantage and Medicaid programs.
- 5The company's Commercial & Specialty Business segment showed improved operating gain due to better medical cost performance and higher administrative fees.
- 6Government Business segment operating gain decreased by 20.4%, impacted by retroactive revenue adjustments and elevated medical costs in certain Medicaid states.
- 7Operating cash flow decreased by $585 million, primarily due to timing differences in Medicare prepayments received in the prior year and lower premium receipts from the HIP Fee suspension.