Summary
Elevance Health, Inc. (ELV) reported its financial results for the second quarter and first half of 2024. For the quarter ended June 30, 2024, total revenues grew slightly to $43.9 billion from $43.7 billion in the prior year quarter. Shareholders' net income saw a significant increase of 24.1% to $2.3 billion, translating to diluted EPS of $9.85, up from $7.79 a year ago. This improvement was driven by better operating performance across all segments, a gain on the sale of its life and disability business, and increased net investment income, partially offset by higher income tax expense. The first six months of 2024 also showed positive trends, with total revenues increasing to $86.5 billion and shareholders' net income rising by 18.3% to $4.5 billion, resulting in diluted EPS of $19.44, up from $16.10 in the same period last year. The company highlighted strong growth in its CarelonRx and Carelon Services segments. However, total medical membership saw a decline of 4.6%, primarily due to Medicaid membership attrition following eligibility redeterminations, which the company expects to offset with growth in its commercial plans. Elevance Health completed the acquisition of Paragon Healthcare, Inc. in March 2024, further bolstering its CarelonRx segment. The company also announced an agreement to acquire Centers Plan for Healthy Living LLC, expected to close in the third quarter of 2024. The sale of its life and disability businesses in April 2024 contributed a $240 million gain. The company repurchased $1.03 billion of its common stock in the first half of 2024, demonstrating a commitment to returning capital to shareholders.
Financial Highlights
53 data points| Revenue | $43.89B |
| Cost of Revenue | $4.82B |
| Gross Profit | $39.07B |
| SG&A Expenses | $5.07B |
| Operating Income | $2.77B |
| Interest Expense | $280.00M |
| Net Income | $2.30B |
| EPS (Basic) | $9.91 |
| EPS (Diluted) | $9.85 |
| Shares Outstanding (Basic) | 232.20M |
| Shares Outstanding (Diluted) | 233.40M |
Key Highlights
- 1Shareholders' net income increased by 24.0% to $2.30 billion for the three months ended June 30, 2024, compared to $1.86 billion in the prior year period.
- 2Diluted Earnings Per Share (EPS) rose to $9.85 for the quarter, a 26.4% increase from $7.79 in the second quarter of 2023.
- 3Total operating revenue for the quarter was $43.22 billion, a slight decrease of 0.4% from $43.38 billion in the prior year quarter, impacted by Medicaid membership attrition.
- 4The company completed the acquisition of Paragon Healthcare, Inc. in March 2024, enhancing its CarelonRx segment.
- 5Elevance Health reported a $240 million gain on the sale of its life and disability businesses in April 2024.
- 6Total medical membership declined by 4.6% to 45.78 million members as of June 30, 2024, primarily due to Medicaid attrition.
- 7The company continued its share repurchase program, spending $1.03 billion on repurchases in the first half of 2024.