Summary
Elevance Health, Inc. (ELV) reported strong revenue growth for the second quarter and first half of 2022, driven by increased membership, particularly in its Government Business segment (Medicaid and Medicare), and higher premium rates. Total operating revenue increased by 15.6% for the quarter and 16.8% year-to-date. Despite revenue growth, net income saw a slight decrease year-over-year, primarily attributed to losses on financial instruments compared to gains in the prior year, and increased amortization expenses related to acquisitions and rebranding efforts. The company successfully expanded its market reach, notably in the Individual and Government segments, and continued its strategic acquisitions, including Integra Managed Care. Elevance Health also recently rebranded, reflecting its evolution into a broader health partner. The company maintains a strong liquidity position and is actively managing its capital through share repurchases and dividends, indicating confidence in its ongoing operational performance and future prospects.
Financial Highlights
52 data points| Revenue | $38.63B |
| Cost of Revenue | $3.07B |
| Gross Profit | $35.56B |
| SG&A Expenses | $4.27B |
| Operating Income | $2.35B |
| Interest Expense | $208.00M |
| Net Income | $1.64B |
| EPS (Basic) | $6.80 |
| EPS (Diluted) | $6.73 |
| Shares Outstanding (Basic) | 240.70M |
| Shares Outstanding (Diluted) | 243.40M |
Key Highlights
- 1Total operating revenue increased by 15.6% to $38.5 billion for the three months ended June 30, 2022, and by 16.8% to $76.4 billion for the six months ended June 30, 2022, compared to the prior year periods.
- 2Medical membership grew by 6.1% to 47.1 million as of June 30, 2022, driven by strong performance in both the Government Business (Medicaid and Medicare) and Commercial & Specialty Business segments.
- 3Net income for the three months ended June 30, 2022, was $1.65 billion, a decrease of 8.4% compared to $1.80 billion in the prior year, primarily due to losses on financial instruments and increased amortization expenses.
- 4Diluted earnings per share (EPS) were $6.79 for the three months ended June 30, 2022, a decrease from $7.25 in the prior year, but EPS for the six months ended June 30, 2022, increased slightly to $14.18 from $13.95.
- 5The company completed the acquisition of Integra Managed Care, further expanding its reach in the long-term care sector for Medicaid members in New York.
- 6Elevance Health announced a significant rebranding initiative, organizing its brand portfolio under core go-to-market brands: Anthem Blue Cross/Anthem Blue Cross and Blue Shield, Wellpoint, and Carelon, to better reflect its comprehensive health services.
- 7Operating cash flow for the six months ended June 30, 2022, increased to $5.0 billion from $4.2 billion in the prior year, reflecting improved net income and working capital changes.