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Elevance Health, Inc. (ELV) reported third-quarter 2024 adjusted earnings per share (EPS) of $8.37, which lagged the Zacks Consensus Estimate by 13.7%. The bottom line deteriorated 6.9% year over year. Operating revenues of $44.7 billion rose 5.2% year over year. Moreover, the top line beat the consensus mark by 3.4%. Quarterly earnings were impacted by rising expenses and a decline in Medicaid and Medicare membership. However, improved product revenues in the CarelonRx business and better premiums in the H ...

Elevance Health Inc. ELV reported on Thursday third-quarter revenues of $44.7 billion, up 5.3% year-overyear, beating the consensus of $43.33 billion. The increase was driven by higher premium yields in the Health Benefits segment and growth in CarelonRx product revenue, partially offset by membership attrition in the Medicaid business. The benefit expense ratio was 89.5%, an increase of 270 basis points, driven primarily by the timing mismatch between Medicaid rates and the higher acuity of members. The co ...

Financial Data and Key Metrics Changes - For Q3 2024, adjusted diluted earnings per share were $8.37, below expectations due to elevated medical costs in the Medicaid business [5][17] - GAAP diluted earnings per share for the quarter was $4.36, with total operating revenue at $44.7 billion, reflecting over 5% year-over-year growth [17][18] - The consolidated benefit expense ratio increased to 89.5%, up 270 basis points year-over-year, primarily due to worsening Medicaid cost trends [18][19] - Adjusted operating gains for the quarter were $2.4 billion, with year-to-date gains at $8.3 billion, mainly reflecting declines in the Medicaid business [19] Business Line Data and Key Metrics Changes - Commercial membership grew by nearly 600,000 year-over-year, driven by strong fee-based and individual ACA health plan growth [18] - Medicaid membership decreased by approximately 85,000 due to a specific footprint change [17][18] - Carelon Services is on track to exceed initial revenue growth targets, with low 20s percentage growth expected [13][14] Market Data and Key Metrics Changes - The Medicaid managed care business is experiencing elevated cost trends, currently running at 3x to 5x historical averages [19][51] - The company anticipates that Medicaid rates will ultimately reflect the acuity of its members, although this may take time due to state processes [20][30] Company Strategy and Development Direction - The company has reduced its full-year outlook for adjusted diluted earnings per share to approximately $33, reflecting a prudent approach to current challenges [6][20] - The focus remains on long-term growth, with investments in operational efficiencies and partnerships with states to enhance Medicaid rates [7][16] - The company is expanding its individual and family ACA plans in three states, aiming to drive growth in Health Benefits and Carelon segments [12] Management's Comments on Operating Environment and Future Outlook - Management acknowledges a challenging operating environment but remains confident in the long-term growth potential of the Medicaid managed care business [6][16] - The company expects continued momentum in its commercial business and stability in Medicaid as redeterminations return to normal [21][22] - Management emphasizes the importance of ongoing investments and operational efficiencies to navigate current challenges [15][22] Other Important Information - The company is integrating AI across various touchpoints to enhance member and provider experiences while reducing costs [15] - The acquisition of Kroger Specialty Pharmacy aligns with the company's strategy to control key levers in delivering whole health affordably [13][14] Q&A Session Summary Question: Concerns about accelerated earnings growth due to Medicaid issues - Management reassured that the earnings power of diverse businesses remains strong, with a long-term target of at least 12% growth in adjusted EPS [25][26] Question: Understanding the worsening Medicaid situation - Management noted accelerated cost trends in Medicaid and unfavorable prior period developments, attributing these to higher membership acuity [28][29] Question: Utilization trends in Medicaid - Management indicated ongoing elevated trends in behavioral health, with expectations of continued pressure on margins [38] Question: Medicaid profitability - Management confirmed that the Medicaid business is expected to be profitable this year, albeit below target margins [41][42] Question: Medicare Advantage competitive environment - Management expressed confidence in their positioning within the Medicare Advantage market, focusing on sustainable growth and stability [46][47] Question: Rate outlook for Medicaid - Management discussed ongoing negotiations with state partners, emphasizing the need for alignment between rates and member acuity [60][61]

Key Takeaways Elevance Health shares plunged Thursday after the insurer reported lower-than-expected earnings and cut its outlook as changes in Medicaid slashed membership rolls. The insurer's third-quarter Medicaid membership dropped 19% from a year ago on eligibility redeterminations and other changes to the program. Elevance said because of the issues with Medicaid, it lowered its full-year profit outlook. Elevance Health (ELV) shares cratered Thursday after the insurer posted a lower-than-expected profi ...

For the quarter ended September 2024, Elevance Health (ELV) reported revenue of $44.72 billion, up 5.3% over the same period last year. EPS came in at $8.37, compared to $8.99 in the year-ago quarter. The reported revenue compares to the Zacks Consensus Estimate of $43.26 billion, representing a surprise of +3.37%. The company delivered an EPS surprise of -13.71%, with the consensus EPS estimate being $9.70. While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- ...

On Thursday, Elevance Health Inc. ELV reported third-quarter revenues of $44.7 billion, up 5.3% year-overyear, beating the consensus of $43.33 billion. The increase was driven by higher premium yields in the Health Benefits segment and growth in CarelonRx product revenue, partially offset by membership attrition in the Medicaid business. The benefit expense ratio was 89.5%, an increase of 270 basis points, driven primarily by the timing mismatch between Medicaid rates and the higher acuity of members. "We r ...

Elevance Health (ELV) came out with quarterly earnings of $8.37 per share, missing the Zacks Consensus Estimate of $9.70 per share. This compares to earnings of $8.99 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -13.71%. A quarter ago, it was expected that this health insurer would post earnings of $9.99 per share when it actually produced earnings of $10.12, delivering a surprise of 1.30%. Over the last four quarters, the ...

E A R N I N G S R E L E A S E ELEVANCE HEALTH REPORTS THIRD QUARTER 2024 RESULTS • 3Q 2024 operating revenue of $44.7 billion 1 • 3Q 2024 adjusted operating gain of $2.4 billion 2 1 • 3Q 2024 diluted EPS of $4.36; adjusted diluted EPS of $8.37 • 4Q 2024 dividend of $1.63 per share declared to shareholders Indianapolis, IN - October 17, 2024 - Elevance Health, Inc. (NYSE: ELV) reported third quarter 2024 results. "We remain confident in the long-term earnings potential of our diverse businesses as we navigat ...

Have you been searching for a stock that might be well-positioned to maintain its earnings-beat streak in its upcoming report? It is worth considering Elevance Health (ELV) , which belongs to the Zacks Medical Services industry. This health insurer has seen a nice streak of beating earnings estimates, especially when looking at the previous two reports. The average surprise for the last two quarters was 1.13%. For the last reported quarter, Elevance Health came out with earnings of $10.12 per share versus t ...