What were the main drivers of revenue growth in the second quarter of 2023?

Revenue growth was primarily driven by higher premium revenues in the Health Benefits segment, reflecting premium rate increases to better align with the cost of care and membership growth in Medicaid and Medicare Advantage. Additionally, growth in CarelonRx pharmacy product revenue, fueled by an increase in external pharmacy members and the acquisition of BioPlus, contributed significantly to the revenue increase.

How did Elevance Health's profitability change compared to the prior year quarter?

Profitability improved significantly. Shareholders' net income increased by 13.2% to $1.85 billion for the three months ended June 30, 2023, compared to $1.64 billion in the same period of 2022. Diluted earnings per share grew by 15.8% to $7.79 from $6.73, driven by higher operating gains across segments, increased net investment income, and reduced net losses on financial instruments.

What is the company's current membership status and outlook?

Total medical membership increased by 2.0% to approximately 48 million members as of June 30, 2023. This growth was primarily attributed to expansion in the Medicaid business, increased BlueCard sales, and growth in Individual Public Exchange and Medicare Advantage products. The company expects continued growth in commercial plans as Medicaid redeterminations transition members to other coverage options.

Are there any significant ongoing legal or regulatory matters that investors should be aware of?

Elevance Health is involved in several significant legal and regulatory matters, including the ongoing Blue Cross Blue Shield Antitrust Litigation, Express Scripts Pharmacy Benefit Management Litigation, and Medicare Risk Adjustment Litigation. While the company is contesting these matters and believes it has meritorious defenses, their ultimate outcomes cannot be presently determined and could potentially have a material adverse effect on its financial condition or results of operations. The company provides detailed updates on these matters in its SEC filings.

ELV 10-Q Quarterly Report Q2 FY2023 — Revenue, Net Income, EPS

Summary

Elevance Health, Inc. (ELV) reported strong financial results for the quarter ending June 30, 2023. Total revenues increased by 13.0% year-over-year to $43.7 billion, driven by higher premium revenues in the Health Benefits segment and growth in CarelonRx. Net income saw a robust increase of 13.6% to $1.86 billion, or $7.79 per diluted share, up from $1.63 billion, or $6.73 per diluted share, in the prior year period. This performance was supported by operating gains across all segments, improved investment income, and a decrease in net losses on financial instruments. The company also experienced significant growth in medical membership, particularly in its Medicaid and Medicare Advantage offerings, contributing to the overall positive financial trajectory. Elevance Health continues to execute on its strategic initiatives, including brand portfolio reorganization and acquisitions, positioning itself for continued growth and value creation. The company's balance sheet remains strong, with total assets growing to $109.2 billion from $102.8 billion at the end of the previous year. Key drivers of this asset growth include increases in cash and cash equivalents, fixed maturity securities, and goodwill, reflecting business acquisitions. Liabilities also increased, primarily due to higher long-term debt and medical claims payable. Shareholders' equity strengthened, demonstrating the company's ability to generate and retain earnings. Operating cash flow for the six months ended June 30, 2023, was substantial at $8.4 billion, indicating healthy operational cash generation. Elevance Health also returned capital to shareholders through dividends and share repurchases, underscoring its commitment to shareholder value.

Financial Highlights

53 data points

Beta

Revenue

$43.67B

0.9% Gross Margin

Net Income

$1.85B

0.0% Net Margin

EPS (Diluted)

$7.79

Total Assets

$109.17B

Cash & Equivalents

$9.99B

Free Cash Flow

$1.60B

Financial Statements

Beta

Revenue	$43.67B
Cost of Revenue	$4.33B
Gross Profit	$39.34B
SG&A Expenses	$4.82B
Operating Income	$2.63B
Interest Expense	$261.00M
Net Income	$1.85B
EPS (Basic)	$7.83
EPS (Diluted)	$7.79
Shares Outstanding (Basic)	236.60M
Shares Outstanding (Diluted)	237.80M

Key Highlights

1Total revenues increased by 12.7% year-over-year to $43.4 billion for the three months ended June 30, 2023.
2Shareholders' net income rose by 13.2% year-over-year to $1.85 billion for the three months ended June 30, 2023.
3Diluted earnings per share increased by 15.8% year-over-year to $7.79 for the three months ended June 30, 2023.
4Total medical membership grew by 938,000 (2.0%) to 47.99 million as of June 30, 2023.
5The company's balance sheet strengthened with total assets increasing to $109.2 billion as of June 30, 2023.
6Operating cash flow for the six months ended June 30, 2023, was $8.4 billion, a significant increase from $5.0 billion in the prior year period.
7Elevance Health completed the acquisition of BioPlus in February 2023, integrating it into its CarelonRx segment.

Elevance Health, Inc. Quarterly Report for Q2 Ended Jun 30, 2023

Summary

Financial Highlights

Key Highlights

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