What drove the revenue growth in the first quarter of 2021?

Revenue growth was primarily driven by higher premium revenue in the Government Business segment, largely due to membership increases in Medicaid and Medicare Advantage. Additionally, the IngenioRx segment contributed with higher pharmacy product revenue.

How did the company's medical membership perform?

Total medical membership increased by 3.3% to 43.5 million. This growth was primarily fueled by the Government Business segment, with significant increases in Medicaid membership (partially due to temporary suspension of eligibility recertification related to COVID-19) and Medicare Advantage. Commercial & Specialty Business membership saw a slight decline, mainly in the group fee-based category due to increased unemployment.

What is the financial impact of the COVID-19 pandemic on Elevance Health?

While the pandemic has impacted healthcare utilization and costs (with elevated COVID-19 related costs and lower non-COVID utilization), the company stated that the pandemic had not had a material adverse effect on its reported results through March 31, 2021. Expenses related to COVID-19 testing, treatment, and vaccine administration were partially offset by lower utilization of non-COVID-19 healthcare services.

What are the company's key growth initiatives or strategic moves mentioned in this report?

Elevance Health announced two significant pending acquisitions: myNEXUS, Inc. to expand its home-based care capabilities, and MMM Holdings, LLC to strengthen its presence in Puerto Rico's Medicare Advantage and Medicaid markets. The company also continues to leverage its IngenioRx PBM services.

ELV 10-Q Quarterly Report Q1 FY2021 — Revenue, Net Income, EPS

Summary

Elevance Health, Inc. (formerly Anthem, Inc.) reported strong revenue growth in the first quarter of 2021, driven by increases in its Government Business segment, particularly Medicaid and Medicare Advantage, and its IngenioRx pharmacy benefits management segment. Total operating revenue rose by 9.0% year-over-year to $32.1 billion. Net income also saw a healthy increase of 9.5% to $1.67 billion, leading to a diluted Earnings Per Share (EPS) of $6.71, up 13.0% from the prior year. The company's balance sheet strengthened with cash and cash equivalents increasing significantly to $9.3 billion. Elevance Health also announced strategic acquisitions in the home-based care and Medicare Advantage sectors, signaling continued growth ambitions.

Financial Highlights

52 data points

Beta

Revenue

$32.38B

0.9% Gross Margin

Net Income

$1.67B

0.1% Net Margin

EPS (Diluted)

$6.71

Total Assets

$95.68B

Cash & Equivalents

$9.33B

Free Cash Flow

$2.30B

Financial Statements

Beta

Revenue	$32.38B
Cost of Revenue	$2.31B
Gross Profit	$30.07B
SG&A Expenses	$3.92B
Operating Income	$2.16B
Interest Expense	$192.00M
Net Income	$1.67B
EPS (Basic)	$6.80
EPS (Diluted)	$6.71
Shares Outstanding (Basic)	245.00M
Shares Outstanding (Diluted)	248.20M

Key Highlights

1Operating revenue increased by 9.0% to $32.1 billion, driven by growth in Government Business (Medicaid and Medicare Advantage) and IngenioRx.
2Net income grew by 9.5% to $1.67 billion, with diluted EPS rising 13.0% to $6.71.
3Medical membership increased by 3.3% to 43.5 million, primarily due to strong growth in the Government Business segment (Medicaid and Medicare Advantage).
4Cash and cash equivalents saw a substantial increase, rising from $5.7 billion at the end of 2020 to $9.3 billion at the end of the first quarter of 2021.
5The company announced two strategic acquisitions: myNEXUS, a home-based nursing management company, and MMM Holdings, a Puerto Rico-based integrated healthcare organization.
6The effective income tax rate decreased to 23.4% from 27.1% in the prior year, largely due to the repeal of the Health Insurance Provider Fee (HIP Fee).
7The company repurchased approximately $447 million of its common stock during the quarter and declared a dividend of $1.13 per share.

Elevance Health, Inc. Quarterly Report for Q1 Ended Mar 31, 2021

Summary

Financial Highlights

Key Highlights

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