Summary
Elevance Health, Inc. (ELV) reported its financial results for the third quarter and the first nine months of 2023. For the three months ending September 30, 2023, total revenues increased by 7.3% year-over-year to $42.85 billion, driven by higher premium revenues and growth in CarelonRx pharmacy revenue. However, net income saw a decline of 18.6% to $1.30 billion, primarily due to business optimization charges and increased net losses on financial instruments. The nine-month period showed a more positive trend in net income, which increased by 3.0% to $5.16 billion. Total operating revenue grew by 10.1% to $127.76 billion for the nine months. The company experienced a slight increase in total medical membership, with growth in Individual Public Exchange and Medicare Advantage products offsetting declines in Medicaid. Management is focused on efficiency programs and strategic acquisitions/divestitures, including the pending acquisition of Blue Cross Blue Shield of Louisiana. Key financial highlights include strong revenue growth, a slight increase in medical membership, and robust operating cash flow generation. However, the quarter was impacted by significant business optimization charges, leading to a year-over-year decrease in quarterly net income and EPS.
Financial Highlights
53 data points| Revenue | $42.85B |
| Cost of Revenue | $4.65B |
| Gross Profit | $38.20B |
| SG&A Expenses | $5.47B |
| Operating Income | $1.76B |
| Interest Expense | $259.00M |
| Net Income | $1.29B |
| EPS (Basic) | $5.48 |
| EPS (Diluted) | $5.45 |
| Shares Outstanding (Basic) | 235.30M |
| Shares Outstanding (Diluted) | 236.50M |
Key Highlights
- 1Total revenues for the third quarter increased by 7.2% to $42.85 billion, driven by higher premium revenues and CarelonRx growth.
- 2Net income for the third quarter decreased by 18.6% to $1.30 billion, largely due to $730 million in business optimization charges and increased investment losses.
- 3For the nine months ended September 30, 2023, total operating revenue increased by 10.1% to $127.76 billion, while net income grew by 3.0% to $5.16 billion.
- 4Total medical membership saw a slight increase of 0.1% to 47.33 million members as of September 30, 2023, driven by Individual Public Exchange and Medicare Advantage growth.
- 5Operating cash flow for the first nine months of 2023 was $11.03 billion, up from $9.92 billion in the prior year.
- 6The company incurred $730 million in costs related to its 2023-2024 Business Efficiency Program in the third quarter, impacting profitability.
- 7Elevance Health continues to execute its strategic initiatives, including the pending acquisition of Blue Cross Blue Shield of Louisiana and the announced divestiture of its life and disability businesses.