Summary
Elevance Health, Inc. (ELV) reported strong financial results for the third quarter and first nine months of 2021. Total operating revenue increased by 16.0% year-over-year for the quarter and 13.0% for the nine-month period, driven by significant membership growth, particularly in the Government Business segment (Medicare and Medicaid), and contributions from acquisitions like MMM Holdings. Net income saw a substantial increase of 576.6% for the quarter and 23.6% for the nine-month period, largely due to the absence of significant charges incurred in the prior year for business optimization initiatives and litigation accruals. Diluted earnings per share (EPS) also demonstrated robust growth, reflecting improved profitability and a reduction in outstanding shares due to ongoing share repurchase programs. The company's balance sheet remains strong, with increasing cash reserves and a manageable debt-to-capital ratio. Strategic acquisitions and organic membership growth are key drivers of the company's performance, positioning it well for continued expansion in the health benefits sector.
Financial Highlights
52 data points| Revenue | $35.82B |
| Cost of Revenue | $2.90B |
| Gross Profit | $32.92B |
| SG&A Expenses | $3.95B |
| Operating Income | $2.06B |
| Interest Expense | $201.00M |
| Net Income | $1.51B |
| EPS (Basic) | $6.20 |
| EPS (Diluted) | $6.13 |
| Shares Outstanding (Basic) | 243.40M |
| Shares Outstanding (Diluted) | 246.00M |
Key Highlights
- 1Total operating revenue grew to $35.5 billion for the third quarter of 2021, a 16.0% increase year-over-year, driven by membership growth and acquisitions.
- 2Shareholders' net income significantly increased to $1.5 billion ($6.13 per diluted share) for the third quarter of 2021, up from $222 million ($0.87 per diluted share) in the prior year period.
- 3Medical membership reached 45.1 million, a 5.7% increase year-over-year, primarily fueled by growth in Government Business (Medicaid and Medicare Advantage) and Commercial & Specialty Business.
- 4The company completed the acquisition of MMM Holdings, LLC on June 29, 2021, and myNEXUS, Inc. on April 28, 2021, integrating them into its Government and Other segments, respectively.
- 5Selling, general, and administrative expenses decreased by 25.6% year-over-year for the quarter, largely due to the absence of prior-year charges related to business optimization and litigation accruals.
- 6The company repurchased approximately 1.2 million shares of common stock for $450 million during the third quarter of 2021, demonstrating a commitment to returning capital to shareholders.