Elevance Health, Inc. (NYSE:ELV) Q2 2024 Earnings Call Transcript July 17, 2024 8:30 AM ET Company Participants Steve Tanal - VP of IR Gail Boudreaux - President and CEO Mark Kaye - CFO Felicia Norwood - President, Government Health Benefits Pete Haytaian - President, Carelon Morgan Kendrick - President, Commercial Health Benefits Conference Call Participants A.J. Rice - UBS Nathan Rich - Goldman Sachs Lance Wilkes - Bernstein Kevin Fischbeck - Bank of America Josh Raskin - Nephron Research Lisa Gill - JPMo ...

The Indianapolis company posted adjusted earnings per share (EPS) of $10.12 on operating revenue of $43.2 billion, topping analysts' consensus estimates compiled by Visible Alpha of $10 per share on revenue of $42.9 billion. Key Takeaways Elevance Health posted adjusted earnings per share (EPS) of $10.12 on revenue of $43.2 billion, beating analysts' expectations. Operating revenue fell year-over-year due to "attrition in Medicaid membership." The company reiterated its full-year adjusted EPS guidance of at ...

For the quarter ended June 2024, Elevance Health (ELV) reported revenue of $43.22 billion, down 0.4% over the same period last year. EPS came in at $10.12, compared to $9.04 in the year-ago quarter. The reported revenue compares to the Zacks Consensus Estimate of $42.99 billion, representing a surprise of +0.54%. The company delivered an EPS surprise of +1.30%, with the consensus EPS estimate being $9.99. While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and ...

Loading... The decrease was driven by attrition in Medicaid membership, partially offset by higher premium yields reflecting the medical cost trend and growth in CarelonRx product revenue related to members served. Premiums fell 3.2% to $35.42 billion, and product revenue rose 14% to $5.53 billion. Services fees increased 18% to $2.28 billion. Reuters notes that Unlike rivals UnitedHealth Group Inc UNH and Humana Inc HUM, Elevance is less exposed to government-backed Medicare Advantage plans for people aged ...

Elevance Health (ELV) came out with quarterly earnings of $10.12 per share, beating the Zacks Consensus Estimate of $9.99 per share. This compares to earnings of $9.04 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 1.30%. A quarter ago, it was expected that this health insurer would post earnings of $10.54 per share when it actually produced earnings of $10.64, delivering a surprise of 0.95%. Over the last four quarters, the ...

Key Highlights • 2Q 2024 adjusted diluted EPS of $10.12 grew 12% year-over-year 2024 Outlook 2 • Guidance embeds investment in strategic growth initiatives, notably in CarelonRx, as we integrate recent acquisitions and scale key value drivers Strategic Focus Areas 3 • Building a sustainable Medicare Advantage business for the long-term 2 • Operating revenue was impacted by declines in Medicaid membership, partially offset by premium rate increases to cover medical cost trends 1. See "Basis of Presentation" ...

Elevance Health, Inc. (ELV) is scheduled to report second-quarter 2024 results on Jul 17, before the opening bell. The Zacks Consensus Estimate for second-quarter earnings per share of $10 indicates a 10.6% increase from the prior-year figure of $9.04. The estimate increased by a penny in the past week. However, the consensus estimate for second-quarter revenues of $43 billion indicates a 0.9% decline from the year-ago reported figure. Elevance Health beat the consensus estimate for earnings in all the prio ...

In its upcoming report, Elevance Health (ELV) is predicted by Wall Street analysts to post quarterly earnings of $10 per share, reflecting an increase of 10.6% compared to the same period last year. Revenues are forecasted to be $42.99 billion, representing a year-over-year decrease of 0.9%. Over the last 30 days, there has been an upward revision of 0.3% in the consensus EPS estimate for the quarter, leading to its current level. This signifies the covering analysts' collective reconsideration of their ini ...

Core Insights - The healthcare sector is experiencing a positive trend, with the Health Care Select Sector SPDR Fund (XLV) gaining 7% year to date, indicating strong investor interest in U.S. healthcare stocks [1] Company Summaries Elevance Health (ELV) - Elevance Health has made strategic acquisitions and partnerships, including the acquisition of Paragon Healthcare and a partnership with Clayton, Dubilier & Rice to enhance health outcomes [2] - The company reported a 0.9% year-over-year increase in operating revenue to $42.3 billion for Q1 2024, with adjusted diluted EPS growing 12.5% to $10.64 [16] - Wall Street projects a 12-month median price target of $604.50 for ELV stock, suggesting a 13% upside potential [10] HCA Healthcare (HCA) - HCA Healthcare's Q1 2024 financials showed revenues of $17.34 billion, an 11.2% increase from the previous year, with adjusted net income rising 3.8% to $1.44 billion [3] - The stock has surged over 24% this year, trading at 16.50x forward earnings, with analysts setting a 12-month price target of $357, indicating a 6% potential upside [6][17] - HCA is involved in a collaborative study funded by the CDC, which has led to advancements in outbreak detection and antibiotic targeting [11] McKesson Corporation (MCK) - McKesson reported total revenues of $76.4 billion for Q4 fiscal 2024, an 11% increase driven by strong U.S. pharmaceutical sales [7] - The stock has increased by 30% year to date, trading at 19.01x forward earnings, with a recommendation for potential entry below $600 [4] - McKesson is expanding its service offerings through strategic partnerships, including a 5-year contract with UnitedHealth Group and collaborations with AstraZeneca for oncology clinical trials [19]

Core Insights - Elevance Health has a market capitalization of $122.6 billion and is recognized as one of the largest publicly traded health benefits providers in the U.S. The company's prudent capital deployment history contributes to its notable price appreciation [1] - The consensus estimate for Elevance Health's full-year 2024 revenues is approximately $172.1 billion, reflecting a 1.1% increase from the previous year, supported by growth in product revenues and administrative fees [1] Financial Performance - Elevance Health's shares have increased by 11.8% year-to-date, outperforming the industry growth of 3.4%, driven by strong operations, new Medicaid contracts, and optimization efforts [5] - The Zacks Consensus Estimate for Elevance Health's 2024 earnings is $37.26 per share, indicating a 12.4% year-over-year increase, with the company having beaten earnings estimates in the last four quarters [19] Business Expansion - The expansion of services to customers and new client acquisitions positively impact Elevance Health's Carelon business, including a partnership with Clayton, Dubilier & Rice to enhance access to value-based care [2] - The company has entered an agreement to acquire Kroger's Specialty Pharmacy business, which is expected to enhance Carelon Rx's access to limited distribution drugs and expand its infusion and pharmacy businesses, with an anticipated 12% year-over-year increase in operating income from this segment in 2024 [14] Shareholder Value - Elevance Health has consistently paid dividends and repurchased shares, with $2.7 billion in share repurchases in 2023 and an additional $566 million in Q1 2024, leaving $3.6 billion remaining under its buyback authorization [8] Membership Trends - The company's total medical membership decreased by 1.2% year-over-year in 2023 and is expected to decline to 46.4 million in 2024 from 47 million in 2023, which may impact premium generation [9]