Summary
Elevance Health, Inc. (formerly Anthem, Inc.) reported strong financial results for the second quarter ended June 30, 2020. Total operating revenue saw a significant increase of 15.9% year-over-year to $29.2 billion, driven by growth in premiums and the launch of its IngenioRx pharmacy benefit management (PBM) services. Net income more than doubled to $2.3 billion, or $8.91 per diluted share, reflecting improved operating gains across all segments and a temporary decrease in benefit expenses due to deferred healthcare utilization amid the COVID-19 pandemic. The company also maintained a solid balance sheet with total assets growing to nearly $88 billion and a healthy cash position. The company's strategic acquisition of Beacon Health Options, Inc. in February 2020 is expected to further diversify its business into health services. Despite the ongoing economic uncertainties related to COVID-19, Elevance Health demonstrated resilience, with management highlighting robust performance and a focus on adapting services for members and providers. Investors can take note of the strong revenue growth, substantial net income improvement, and strategic expansion into behavioral health as key takeaways from this report.
Financial Highlights
51 data points| Revenue | $29.26B |
| Cost of Revenue | $2.23B |
| Gross Profit | $27.04B |
| SG&A Expenses | $4.05B |
| Operating Income | $3.36B |
| Interest Expense | $201.00M |
| Net Income | $2.28B |
| EPS (Basic) | $9.02 |
| EPS (Diluted) | $8.91 |
| Shares Outstanding (Basic) | 252.20M |
| Shares Outstanding (Diluted) | 255.40M |
Key Highlights
- 1Total operating revenue increased 15.9% to $29.2 billion for the three months ended June 30, 2020, compared to the prior year.
- 2Net income more than doubled to $2.3 billion for the three months ended June 30, 2020, a 99.8% increase year-over-year.
- 3Diluted EPS rose to $8.91 for the three months ended June 30, 2020, from $4.36 in the same period last year.
- 4The company completed the acquisition of Beacon Health Options, Inc., expanding its behavioral health services capabilities.
- 5Benefit expense decreased by 4.0% for the three months ended June 30, 2020, attributed to lower healthcare claims volume due to COVID-19 related deferrals of routine care.
- 6Operating cash flow significantly increased to $8.0 billion for the six months ended June 30, 2020, up from $3.1 billion in the prior year, aided by higher net income and tax payment deferrals.
- 7Medical membership grew by 3.9% to 42.5 million as of June 30, 2020, driven by increases in Government and Commercial & Specialty businesses.