Summary
Elevance Health, Inc. (formerly Anthem, Inc.) reported a strong first quarter for 2022, with total revenues reaching $38.1 billion, an increase of 17.6% year-over-year. This growth was primarily driven by a significant increase in premium revenue, bolstered by organic membership growth in its Medicaid business, which benefited from the continued suspension of eligibility recertification due to the COVID-19 pandemic. The company also saw contributions from acquisitions and rate increases in its Medicare Advantage and Commercial risk-based businesses. Net income rose by 7.7% to $1.8 billion, leading to a diluted earnings per share (EPS) of $7.39, an increase of 10.1% compared to the prior year's quarter. The company also returned capital to shareholders through dividends and share repurchases, demonstrating a commitment to shareholder value while investing in growth. The company's robust performance was supported by strong membership growth, with total medical membership increasing by 7.5% to over 46.7 million. The Government Business segment, in particular, experienced substantial growth in Medicaid membership. This strategic expansion, coupled with operational efficiencies and favorable investment income, contributed to the positive financial results. Elevance Health also highlighted progress in its strategic initiatives, including its planned name change to Elevance Health, Inc. to better reflect its evolving business model, and ongoing acquisition activities aimed at expanding its capabilities in managed long-term care.
Financial Highlights
52 data points| Revenue | $38.09B |
| Cost of Revenue | $2.88B |
| Gross Profit | $35.21B |
| SG&A Expenses | $4.34B |
| Operating Income | $2.43B |
| Interest Expense | $201.00M |
| Net Income | $1.79B |
| EPS (Basic) | $7.41 |
| EPS (Diluted) | $7.32 |
| Shares Outstanding (Basic) | 241.40M |
| Shares Outstanding (Diluted) | 244.40M |
Key Highlights
- 1Total operating revenue grew by 18.0% to $37.9 billion, driven by premium revenue increases from organic membership growth in Medicaid and other businesses.
- 2Net income increased by 7.7% to $1.8 billion, resulting in diluted EPS of $7.39, up 10.1% year-over-year.
- 3Total medical membership increased by 7.5% to 46.8 million, largely attributed to Medicaid growth and acquisitions.
- 4The company repurchased $545 million of common stock and paid $309 million in dividends during the quarter, demonstrating capital return to shareholders.
- 5Net investment income increased by 23.7% to $360 million.
- 6The company announced its intent to change its name to Elevance Health, Inc. to better reflect its business evolution.