10-Q/APeriod: Q2 FY2023

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

Filed September 29, 2023For Securities:ELV

Summary

Elevance Health, Inc. (ELV) reported solid financial results for the quarter ending June 29, 2023, demonstrating continued growth and operational strength. Total revenues increased by 12.7% year-over-year for the quarter, driven by strong performance in its Health Benefits segment and growth in CarelonRx. Net income saw a healthy increase of 13.6% compared to the prior year's quarter, reflecting improved operating gains and efficient cost management. The company also reported a significant increase in operating cash flow, highlighting its ability to generate substantial cash from its core operations. Membership continued to grow, particularly in Medicaid and Medicare Advantage, underscoring the company's expanding reach in key government programs. Key strategic initiatives are progressing, including the pending acquisition of Blue Cross and Blue Shield of Louisiana, which is expected to further enhance the company's market position. Management highlighted prudent capital allocation, including ongoing share repurchases and dividend payments, reinforcing its commitment to shareholder value. Despite the dynamic healthcare landscape, Elevance Health has demonstrated resilience and strategic execution, positioning it favorably for future growth.

Financial Highlights

53 data points
Beta

Revenue

$43.67B

90.1% Gross Margin

Net Income

$1.86B

4.2% 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$1.86B
EPS (Basic)$7.83
EPS (Diluted)$7.79
Shares Outstanding (Basic)236.60M
Shares Outstanding (Diluted)237.80M

Key Highlights

  • 1Total operating revenue increased by 12.7% to $43.4 billion for the three months ended June 30, 2023, compared to the prior year.
  • 2Shareholders' net income increased by 13.2% to $1.85 billion for the three months ended June 30, 2023, compared to the prior year.
  • 3Diluted EPS rose to $7.79 for the three months ended June 30, 2023, an increase of 15.8% year-over-year.
  • 4Total medical membership grew by 2.0% to approximately 48 million as of June 30, 2023, driven by Medicaid, BlueCard sales, and Medicare Advantage.
  • 5Operating cash flow for the first six months of 2023 was $8.4 billion, a substantial increase from $5.0 billion in the prior year.
  • 6The company is proceeding with the acquisition of Blue Cross and Blue Shield of Louisiana, expected to close by year-end 2023.
  • 7Elevance Health repurchased $1.27 billion of its common stock in the first six months of 2023.

Frequently Asked Questions

For the three months ended June 30, 2023, Elevance Health reported total operating revenue of $43,377 million, an increase of 12.7% compared to $38,482 million in the same period of the prior year.

Shareholders' net income increased by 13.2% to $1,853 million for the three months ended June 30, 2023, compared to $1,637 million in the prior year. Diluted earnings per share also saw significant growth, rising by 15.8% to $7.79 from $6.73 in the comparable period.

Elevance Health announced its agreement to acquire Louisiana Health Service & Indemnity Company, d/b/a Blue Cross and Blue Shield of Louisiana (BCBSLA). The acquisition is expected to close by the end of the fourth quarter of 2023, subject to customary closing conditions and approvals.

The company continues to actively manage its capital. In the first six months of 2023, Elevance Health repurchased $1.27 billion of its common stock and paid $701 million in cash dividends. The Board of Directors has authorized a significant common stock repurchase program, demonstrating a commitment to returning value to shareholders.