Summary
Elevance Health, Inc. (ELV) reported strong financial results for the first quarter of 2023, exceeding the previous year's performance. Total operating revenue increased by 10.6% to $41.9 billion, driven by robust membership growth across key segments including Medicaid, Medicare Advantage, and commercial fee-based plans. Net income saw a significant jump of 12.6% to $2.0 billion, translating to a diluted EPS of $8.30, up 13.4% year-over-year. This growth was supported by improved operating gains in its business segments, particularly Health Benefits and CarelonRx, alongside higher net investment income. The company also reported a substantial increase in operating cash flow, nearly tripling to $6.5 billion, bolstered by early premium receipts from CMS and positive working capital movements. Strategically, Elevance Health continues to evolve its brand portfolio and operational structure, with a new segment reporting alignment implemented in Q1 2023. The company also announced two significant M&A activities: the agreement to acquire Blue Cross Blue Shield of Louisiana and the pending sale of its life and disability businesses. These moves underscore Elevance Health's commitment to its long-term strategy of becoming a trusted health partner and expanding its integrated care solutions.
Financial Highlights
52 data points| Revenue | $42.17B |
| Cost of Revenue | $3.48B |
| Gross Profit | $38.69B |
| SG&A Expenses | $4.80B |
| Operating Income | $2.83B |
| Interest Expense | $251.00M |
| Net Income | $1.99B |
| EPS (Basic) | $8.37 |
| EPS (Diluted) | $8.30 |
| Shares Outstanding (Basic) | 237.50M |
| Shares Outstanding (Diluted) | 239.70M |
Key Highlights
- 1Total operating revenue increased 10.6% to $41.9 billion, driven by strong membership growth and premium rate adjustments.
- 2Net income rose 12.6% to $2.0 billion, with diluted EPS growing 13.4% to $8.30.
- 3Operating cash flow surged to $6.5 billion from $2.5 billion in the prior year, indicating improved operational liquidity.
- 4Total medical membership increased by 1.3 million (2.9%) to 48.1 million, primarily in Medicaid and Medicare Advantage.
- 5Announced agreement to acquire Blue Cross Blue Shield of Louisiana, strengthening its market presence.
- 6Entered into an agreement to sell its life and disability businesses, refocusing its portfolio.
- 7Implemented a new segment reporting structure to align with its evolving brand strategy and operational focus.