Core Viewpoint - A class action lawsuit has been filed against Elevance Health, Inc. concerning allegations of securities fraud and unlawful business practices [2]. Group 1: Lawsuit Details - The class action lawsuit involves claims that Elevance and certain officers and/or directors engaged in securities fraud or other unlawful business practices [2]. - Investors who purchased Elevance securities during the Class Period have until July 11, 2025, to request to be appointed as Lead Plaintiff [2]. Group 2: Financial Performance and Market Reaction - On July 17, 2024, Elevance's CEO reported a shift in Medicaid membership mix leading to increased acuity, resulting in a stock price drop of $32.21 per share, or 5.8%, closing at $520.93 [4]. - During the October 17, 2024, earnings call, the CEO disclosed that adjusted diluted earnings per share for the third quarter were $8.37, below expectations due to elevated medical costs in Medicaid, causing a stock price decline of $52.61 per share, or 10.6%, closing at $444.35 [5]. - The full-year outlook for adjusted diluted earnings per share was reduced from $37.20 to approximately $33, despite previous guidance just three months earlier [5].

Core Viewpoint - A securities class action lawsuit has been filed against Elevance Health, Inc. for allegedly misleading investors regarding the company's Medicaid cost trends and financial guidance during the Class Period from April 18, 2024, to October 16, 2024 [1][2]. Group 1: Allegations and Misrepresentation - The lawsuit claims that Elevance's management assured investors that they were monitoring Medicaid cost trends and that premium rates were sufficient to manage risks associated with Medicaid patients [2]. - It is alleged that while management acknowledged rising Medicaid expenses, they misrepresented that these were adequately reflected in the company's financial guidance for 2024 [2]. - The complaint states that management claimed to have "visibility into 75% of our Medicaid rates and premiums for 2024," asserting that the majority were actuarially sound, which is now disputed [2]. Group 2: Impact of Disclosures - The truth about rising acuity and utilization among Medicaid members began to emerge on July 17, 2024, when Elevance indicated an expectation of increased utilization in the second half of the year [3]. - Following this disclosure, Elevance's stock price fell by $32.21 per share, a decline of 5.8%, from $553.14 on July 16, 2024, to $520.93 on July 17, 2024 [3]. Group 3: Investor Actions - Investors who acquired shares of Elevance during the Class Period are encouraged to contact the law firm Gainey McKenna & Egleston before the lead plaintiff motion deadline on July 11, 2025 [4].

Core Viewpoint - Elevance Health, Inc. reported strong first-quarter 2025 results with adjusted EPS of $11.97, exceeding estimates and showing a year-over-year increase of 10.5% [1][2] Financial Performance - Operating revenues reached $48.8 billion, a 15.4% increase year over year, surpassing consensus estimates by 6% [1][4] - Premiums rose 14.5% year over year to $40.9 billion, exceeding the consensus mark of $38.7 billion [4] - Product revenues increased by 29.1% year over year to $5.8 billion, also beating estimates [4] - Net investment income grew 26.9% year over year to $590 million, surpassing the consensus of $461.3 million [4] - Total expenses were $46.1 billion, up 16.3% year over year, higher than estimates due to increased benefit expenses and operating costs [5] Membership and Operational Update - Medical membership stood at approximately 45.8 million, a 0.5% decline year over year, attributed to Medicaid attrition [3] - The reported membership figure fell short of the Zacks Consensus Estimate of 46.2 million [3] Segment Performance - Health Benefits segment revenues totaled $41.4 billion, an 11.2% year-over-year increase, beating estimates [6] - Carelon segment revenues reached $16.7 billion, a 38% increase year over year, driven by acquisitions and product revenue growth [7] - Corporate & Other segment reported revenues of $165 million with an operating loss of $140 million, wider than the previous year's loss [9] Financial Position - Cash and cash equivalents were $7.5 billion, down from $8.3 billion at the end of 2024 [10] - Total assets increased to $119.7 billion from $116.9 billion at the end of 2024 [10] - Long-term debt decreased to $28.1 billion from $29.2 billion [11] - Total equity grew to $42.6 billion from $41.4 billion at the end of 2024 [11] Capital Deployment - The company repurchased shares worth $880 million in Q1 2025, with $8.4 billion remaining under its buyback authorization [12] - A quarterly dividend of $1.71 per share was paid, totaling $386 million [12] 2025 Outlook - The company reaffirmed adjusted EPS guidance between $34.15 and $34.85, an increase from the 2024 figure of $33.04 [13] - Operating revenues are expected to grow in the high-single to low-double digits from $175.2 billion in 2024 [15] - Medical enrollment is forecasted to be between 45.8 and 46.7 million in 2025 [15]

Membership and Growth - As of March 31, 2025, Elevance Health serves approximately 45.8 million medical members through its affiliated health plans [152]. - The company anticipates continued growth in Public Exchange membership and has expanded into select service areas in Florida, Maryland, and Texas in 2025 [156]. - Total medical membership as of March 31, 2025, was 45,833 thousand, a decline of 216 thousand or 0.5% from March 31, 2024 [187]. - Medicare Advantage membership increased by 238 thousand or 11.8% to 2,255 thousand as of March 31, 2025 [187]. - 53% of Elevance Health's Medicare Advantage members were enrolled in plans rated at least 4.0 Stars or higher for the 2024 Star Ratings [169]. Financial Performance - Total operating revenue for the three months ended March 31, 2025, was $48,765 million, an increase of $6,492 million or 15.4% from the same period in 2024 [182]. - Net income for the three months ended March 31, 2025, was $2,184 million, a decrease of $65 million or 2.9% compared to the same period in 2024 [183]. - Health Benefits operating revenue increased by $4,173 million or 11.2% to $41,431 million, driven by higher premium yields and growth in Medicare Advantage and Individual ACA membership [203]. - CarelonRx operating revenue rose by $2,049 million or 25.4% to $10,116 million, primarily due to higher prescription volume and revenue from recent acquisitions [205]. - Carelon Services operating revenue increased by $2,527 million or 63.0% to $6,536 million, attributed to the acquisition of CareBridge and expansion of risk-based capabilities [206]. - Total operating gain for the three months ended March 31, 2025, was $3,170 million, a $154 million or 5.1% increase from $3,016 million in 2024 [202]. - The operating margin decreased to 6.5% in 2025 from 7.1% in 2024, reflecting a decline of 60 basis points [202]. Cash Flow and Liquidity - Operating cash flow for the three months ended March 31, 2025, was $1,017 million, down from $1,978 million in the same period in 2024 [185]. - Net cash provided by operating activities decreased by $961 million to $1,017 million in 2025, compared to $1,978 million in 2024 [221]. - Total sources of cash for the three months ended March 31, 2025, were $2,196 million, down $1,229 million from $3,425 million in 2024 [221]. - Total uses of cash decreased by $740 million to $2,985 million in 2025, compared to $3,725 million in 2024 [221]. - Cash, cash equivalents, and investments in fixed maturity and equity securities totaled $34,712 million as of March 31, 2025, a decrease of $1,004 million since December 31, 2024 [223]. - The company believes cash on hand and available credit will be adequate to fund expected cash disbursements over the next twelve months [235]. Debt and Capital Structure - The consolidated debt-to-capital ratio was 41.3% as of March 31, 2025, down from 43.0% as of December 31, 2024 [228]. - The company has a senior revolving credit facility of up to $4,000, maturing in April 2027, with no amounts outstanding as of March 31, 2025 [231]. - The company has an authorized commercial paper program of up to $4,000, with no commercial paper outstanding as of March 31, 2025 [232]. - Short-term borrowings from Federal Home Loan Banks were $250 as of March 31, 2025, down from $365 as of December 31, 2024 [233]. - The company intends to maintain its senior debt investment grade ratings, currently rated "A" by S&P and "BBB+" by Fitch [229]. - The company is in compliance with all debt covenants under the 5-Year Facility as of March 31, 2025 [231]. Acquisitions and Investments - Elevance Health completed the acquisition of Centers Plan for Healthy Living LLC and Centers for Specialty Care Group IPA, LLC on December 31, 2024, enhancing its Health Benefits segment [171]. - The acquisition of RSV QOZB LTSS, Inc. (CareBridge) on December 10, 2024, aligns with Carelon Services' strategy for home care management [172]. - The company made an equity investment of $2,580 in Augusta Topco Holdings, L.P. (Mosaic Health), acquiring approximately 35% ownership [173]. - Elevance Health completed the acquisition of Paragon Healthcare, Inc. on March 11, 2024, which provides infusion services and aligns with its care management vision [174]. - The sale of life and disability businesses to StanCorp Financial Group, Inc. on April 1, 2024, resulted in a gain on sale of $201 million [175]. Legal and Regulatory Matters - The company is involved in ongoing litigation related to antitrust claims against the BCBSA and Blue plans, with a settlement agreement amounting to $604 million approved in June 2024 [178]. - The company recognized an estimated payment obligation of $666 million under the Provider Settlement Agreement in September 2024 [179]. - The regulated subsidiaries exceeded all applicable mandatory risk-based capital requirements as of December 31, 2024 [234]. - There have been no material changes to long-term liquidity requirements since December 31, 2024 [236]. Tax and Expense Ratios - The benefit expense ratio increased to 86.4% for the three months ended March 31, 2025, compared to 85.6% for the same period in 2024 [190]. - The effective tax rate decreased to 21.9% for the three months ended March 31, 2025, from 23.5% in the same period in 2024 [190]. - Net investment income increased by $125 million or 26.9% to $590 million for the three months ended March 31, 2025 [190]. - CarelonRx Quarterly Adjusted Scripts increased by 6.9 million or 9.0% to 83.9 million for the three months ended March 31, 2025 [187].

Core Insights - Elevance Health reported $48.77 billion in revenue for Q1 2025, a year-over-year increase of 15.4% and a surprise of +5.95% over the Zacks Consensus Estimate of $46.03 billion [1] - The EPS for the same period was $11.97, compared to $10.64 a year ago, with an EPS surprise of +6.78% against the consensus estimate of $11.21 [1] Revenue and Membership Metrics - Total Medical Membership stood at 45.83 million, slightly below the estimated 46.24 million [4] - Medicaid Medical Membership was 8.86 million, close to the estimate of 8.89 million [4] - Medicare Medical Membership was 876 thousand, exceeding the estimate of 866.49 thousand [4] - Commercial Risk-Based Medical Membership was 3.64 million, below the estimate of 3.75 million [4] Revenue Breakdown - Premium revenues reached $40.89 billion, surpassing the average estimate of $38.70 billion, reflecting a year-over-year change of +14.5% [4] - Service fees totaled $2.07 billion, slightly below the estimate of $2.13 billion, showing a -0.4% change year-over-year [4] - Net investment income was $590 million, exceeding the estimate of $461.32 million, with a year-over-year increase of +26.9% [4] - Product revenue was $5.81 billion, above the estimate of $5.11 billion, representing a +29.1% change year-over-year [4] Operating Revenue Performance - Total operating revenue from Carelon Services was $6.54 billion, exceeding the estimate of $5.87 billion, with a year-over-year change of +63% [4] - CarelonRx generated $10.12 billion in operating revenue, surpassing the estimate of $9.40 billion, reflecting a +25.4% change year-over-year [4] - Health Benefits operating revenue was $41.43 billion, above the estimate of $39.82 billion, with a year-over-year increase of +11.2% [4] - Carelon's total operating revenue was $16.65 billion, exceeding the estimate of $15.27 billion, representing a +37.9% change year-over-year [4]

Elevance Health (ELV) Q1 2025 Earnings Call April 22, 2025 08:30 AM ET Company Participants Nathan Rich - Vice President of IRGail Boudreaux - President & Chief Executive OfficerMark Kaye - Executive VP & CFOA.J. Rice - Managing DirectorLance Wilkes - Managing DirectorPeter Haytaian - Executive VP and President of Carelon & CarelonRxAndrew Mok - DirectorLisa Gill - Managing DirectorBen Hendrix - Vice PresidentFelicia Norwood - Executive VP & President of Government Health BenefitsWhit Mayo - Senior Managing ...

Elevance Health 1Q 2025 Earnings Presentation April 22, 2025 The Value We Deliver We advance whole health through innovative solutions that integrate physical, behavioral, and social care to achieve our purpose of improving the health of humanity For Consumers Simple, Affordable, and Accessible Health Care For Care Providers Deepen Clinical and Business Partnerships 3 1Q 2025 Results 2 1. Simplifying healthcare through enhanced digital capabilities that personalize member experiences 2. Affordability at the ...

Elevance Health, Inc. (ELV) Q1 2025 Earnings Conference Call April 22, 2025 08:30 AM ET Company Participants Conference Operator - OperatorNathan Rich - Vice President of Investor RelationsGail Boudreau - President and CEOMark Kay - Chief Financial OfficerPete Haitayan - President, CarillonFelicia Norwood - President, Government Health Benefits BusinessModerator - Call Moderator Conference Call Participants AJ Rice - Analyst, UBSLance Wilkes - Analyst, BernsteinStephen Baxter - Analyst, Wells FargoAndrew Mo ...

Financial Data and Key Metrics Changes - In Q1 2025, GAAP diluted earnings per share was $9.61, and adjusted diluted earnings per share was $11.97, reflecting year-over-year growth of more than 10% [25] - Operating revenue for the quarter was $48.8 billion, an increase of over 15%, driven by higher premium yields in the health benefits segment and growth in Medicare Advantage and individual ACA membership [26] - The consolidated benefit expense ratio was 86.4%, an increase of 80 basis points year over year, primarily due to higher cost trends in the Medicaid business [27] Business Line Data and Key Metrics Changes - Medicaid business is making progress on rate alignment, with April adjustments coming in as expected [16] - Medicare Advantage performance was consistent with expectations, with strong retention and targeted growth [17] - Health benefits operating gain was $2.2 billion, slightly declining due to higher Medicaid costs, while Calon's operating gain grew 34% to $1.1 billion [29] Market Data and Key Metrics Changes - Individual ACA membership grew approximately 11% sequentially, but a moderation in membership is anticipated in Q2 due to lower effectuation rates [25][56] - The company is expanding into three new states to support broader strategy for coordinated ACA and Medicaid coverage [19] Company Strategy and Development Direction - The company is focused on transforming healthcare experiences to be simpler, more affordable, and more human, with sustained investments in patient advocacy solutions and digital platforms [9][10] - Expansion of value-based oncology care model to Medicare Advantage is planned, following success in the commercial sector [12] - Carillon continues to be a strategic growth engine, significantly expanding relationships with external payers [20] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term outlook for Medicare Advantage, emphasizing strong retention and disciplined growth [17] - Elevated Medicare costs are manageable, with consistent tracking of claims data to identify emerging patterns [39][41] - The company remains disciplined in its approach to benefit design and risk management, ensuring alignment with healthcare needs [129] Other Important Information - The company was named to Fortune's 100 Best Companies to Work For and recognized as one of America's most innovative companies [22] - Operating cash flow totaled $1 billion, with expectations for approximately $8 billion for the year remaining unchanged [32] Q&A Session Summary Question: Medicare Advantage trends and IRA impact - Management indicated that Medicare costs remain elevated but manageable, with no material changes in expectations [39][41] Question: Carillon Services growth and cross-sales - Carillon Services experienced over 60% growth, with strong internal and external expansion [47] Question: Effectuation rates and membership attrition - Membership attrition is projected in the mid-single digit percent range in early Q2, with stabilization expected thereafter [56] Question: Medicaid MLR margin trends - Medicaid trends remain elevated but decelerated as expected, with improvements anticipated in the latter half of the year [117] Question: Part D changes and utilization behavior - Management is comfortable with the mix of Medicare Advantage membership and has not observed substantial variations in utilization [140]

Core Viewpoint - Elevance Health reported quarterly earnings of $11.97 per share, exceeding the Zacks Consensus Estimate of $11.21 per share, and showing an increase from $10.64 per share a year ago, indicating a 6.78% earnings surprise [1][2] Financial Performance - The company achieved revenues of $48.77 billion for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 5.95%, compared to $42.27 billion in the same quarter last year [2] - Over the last four quarters, Elevance Health has exceeded consensus EPS estimates three times and topped revenue estimates four times [2] Stock Performance - Elevance Health shares have increased approximately 10.2% since the beginning of the year, contrasting with a decline of 12.3% in the S&P 500 [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $9.81 on revenues of $47.67 billion, and for the current fiscal year, it is $34.19 on revenues of $192.23 billion [7] - The trend of estimate revisions for Elevance Health is mixed, which may change following the recent earnings report [6] Industry Context - The Medical Services industry, to which Elevance Health belongs, is currently ranked in the bottom 42% of over 250 Zacks industries, suggesting potential challenges ahead [8]