Summary
Elevance Health, Inc. (formerly Anthem, Inc.) reported strong revenue growth in the second quarter of 2021, with total revenues reaching $33.85 billion, an increase of 15.7% compared to the same period in 2020. This growth was primarily driven by a significant increase in premium revenues within the Government Business segment, fueled by membership gains in Medicaid and Medicare Advantage, and bolstered by higher pharmacy product revenue from the IngenioRx segment. Despite the revenue surge, net income saw a decrease of 20.9% to $1.80 billion, mainly attributed to rising benefit expenses related to the return of non-COVID-19 healthcare utilization to pre-pandemic levels and increased COVID-19 related costs, alongside lower operating gains in the Commercial & Specialty and Government segments. The company also completed two strategic acquisitions in the quarter: MMM Holdings, LLC and myNEXUS, Inc., which are expected to contribute to future growth and strategic alignment. The balance sheet shows a healthy increase in total assets to $96.10 billion, driven by significant increases in goodwill and other intangible assets resulting from these acquisitions. Debt levels also increased to support growth and operations. The company maintained a strong liquidity position, though operating cash flow saw a notable decrease compared to the prior year, primarily due to changes in working capital and tax payments. Overall, Elevance Health demonstrated robust top-line growth driven by its government business and PBM services, alongside strategic acquisitions. However, investors should note the pressure on profitability due to rising healthcare costs and the lingering impacts of the pandemic on utilization and expenses. The company's financial health remains solid, supported by its investment portfolio and strong liquidity.
Financial Highlights
52 data points| Revenue | $33.85B |
| Cost of Revenue | $2.61B |
| Gross Profit | $31.24B |
| SG&A Expenses | $3.82B |
| Operating Income | $2.08B |
| Interest Expense | $205.00M |
| Net Income | $1.79B |
| EPS (Basic) | $7.33 |
| EPS (Diluted) | $7.25 |
| Shares Outstanding (Basic) | 244.50M |
| Shares Outstanding (Diluted) | 247.40M |
Key Highlights
- 1Total revenues increased by 15.7% year-over-year to $33.85 billion for the three months ended June 30, 2021, driven by growth in Government Business and IngenioRx.
- 2Net income decreased by 20.9% to $1.80 billion, impacted by higher benefit expenses and increased COVID-19 related healthcare costs.
- 3Total assets grew to $96.10 billion, largely due to significant goodwill and intangible asset increases from recent acquisitions.
- 4The company completed two strategic acquisitions in the quarter: MMM Holdings, LLC and myNEXUS, Inc., aimed at expanding its healthcare services capabilities.
- 5Medical membership increased by 4.4% to 44.34 million, primarily driven by growth in the Government Business segment, particularly Medicaid and Medicare Advantage.
- 6Operating cash flow for the six months ended June 30, 2021, decreased significantly to $4.19 billion from $8.03 billion in the prior year, attributed to working capital changes and higher tax payments.
- 7The company's effective tax rate decreased from 27.7% to 23.5% due to the repeal of the non-tax deductible Health Insurance Provider Fee.