Elevance Health, Inc. (ELV) reported first-quarter 2024 adjusted earnings of $10.64 per share, which surpassed the Zacks Consensus Estimate by 0.9%. The bottom line climbed 12.5% year over year.Operating revenues rose 0.9% year over year to almost $42.3 billion in the quarter under review. However, the top line missed the consensus mark by 0.4%.The strong first-quarter earnings benefited on the back of lower-than-expected expenses, premium rate increases and growth in the Carelon brand. However, the upside ...

Financial Data and Key Metrics - Adjusted EPS for Q1 2024 came in slightly better than seasonal expectations, with an increase of $0.10 to be greater than $37.20 [2] - Operating revenue for Q1 2024 was $42.3 billion, in line with expectations, with a consolidated benefit expense ratio of 85.6%, improving by 20 basis points year-over-year [40] - Operating cash flow in Q1 was $2 billion, or approximately 0.9 times net income, with a debt to capital ratio of 39.4% [51] - Days in claims payable stood at 49 days as of March 31st, up three days from the prior year quarter, primarily due to higher reserves associated with slower claims receipts [51] Business Line Performance - Health benefits and Carelon divisions saw operating margin increases of 30 basis points and 20 basis points respectively, driven by disciplined execution and recovery of commercial margins from pandemic lows [2] - Carelon Services had a strong start to the year with revenue and operating earnings growth driven by risk-based service line expansions and effective cost management, particularly in Carelon Insights and Carelon Behavioral Health [56] - Medicaid business performed in line with expectations, with nearly 90% of members having their eligibility redetermined, and the team working to maximize access to care for Medicaid members [38] Market Performance - Medicare Advantage membership declined slightly due to select market exits, but the company remains focused on profitable and sustainable growth [55] - Medicaid attrition was partially offset by ongoing momentum in the commercial business, with nearly 400,000 commercial fee-based members and over 200,000 individual ACA members added during the quarter [55] - The company was selected in Florida and Virginia to serve beneficiaries across traditional and complex populations, including those with serious mental illness and sole source foster care [37] Strategic Direction and Industry Competition - The company is focused on accelerating capabilities and services, investing in high-growth opportunities, and optimizing the health benefits business [31] - A strategic partnership with Clayton, Dubilier & Rice was formed to build a payer-agnostic advanced primary care and physician-enablement business, serving consumers across commercial, Medicare, and Medicaid health plans [44] - The company is expanding its specialty pharmacy capabilities through acquisitions, including Kroger's Specialty Pharmacy business, to increase access to limited distribution drugs and strengthen relationships with manufacturers [46] Management Commentary on Operating Environment and Future Outlook - Management remains confident in delivering another year of growth in adjusted diluted earnings per share, consistent with a long-term compound annual growth rate of at least 12% [31] - The company is navigating a dynamic operating environment, with disciplined premium rate adjustments reflecting medical cost trends and ongoing recovery of commercial margins [40] - Management is focused on balancing growth and margins in the Medicare Advantage business, particularly in light of CMS's decision to cut Medicare Advantage rates for the second consecutive year [39] Other Important Information - The company was named to Fortune magazine's 100 Best Companies to Work for list for the fourth year in a row and included in their World's Most Admired Companies and America's Most Innovative Companies list [29] - The company is working on significant risk arrangements in oncology and for the seriously mentally ill, with a methodical state-by-state rollout planned for 2024 and 2025 [26] Q&A Session Summary Question: Utilization trends by line of business in Q1 [89] - Utilization in the health benefits business was in line with expectations, with a reported benefit expense ratio of approximately 85.6% [3] - Commercial business saw inpatient and outpatient authorization levels aligned with expectations, while Medicare utilization was as expected, with trends broadly planned for in cost trend assumptions [3] - Medicaid experienced increased state-specific utilization due to redetermination and mix impacts, but the company remains comfortable with the trends [3] Question: Medicaid redetermination and rate adequacy [72] - Approximately 90% of Medicaid members have had their eligibility redetermined, with the process expected to taper down by June [73] - The company has visibility into 75% of Medicaid rates and premiums for 2024, with the majority actuarially sound and ongoing constructive dialogues with state partners [73] Question: Carelon Services margins and full-year guidance [24] - Carelon Services margins expanded by 90 basis points in Q1, driven by strong revenue growth and new internal risk deals [25] - Full-year guidance remains unchanged, with expected transitory quarterly volatility due to the seasonality of the business and timing of new product launches [25] Question: Medicare Advantage rate cuts and 2025 strategy [103] - The company is disappointed with CMS's decision to cut Medicare Advantage rates for the second consecutive year, which will negatively impact seniors [39] - The focus for 2025 is on balancing growth and margins, with a disciplined approach to Medicare Advantage bids and a focus on high-value competitive benefits [80] Question: Kroger Specialty Pharmacy acquisition and script transition [93] - The acquisition of Kroger Specialty Pharmacy is expected to close in Q3 and Q4 2024, adding meaningful scale and access to limited distribution drugs [15] - The company feels confident about the stickiness of scripts and the straightforward integration and transition process [15] Question: Long-term EPS growth expectations [104] - The company remains committed to achieving a long-term adjusted EPS CAGR of 12% to 15% through 2027, with confidence in sustaining at least a 12% CAGR over time [105]

Elevance Health (ELV) reported $42.27 billion in revenue for the quarter ended March 2024, representing a year-over-year increase of 0.9%. EPS of $10.64 for the same period compares to $9.46 a year ago.The reported revenue compares to the Zacks Consensus Estimate of $42.43 billion, representing a surprise of -0.36%. The company delivered an EPS surprise of +0.95%, with the consensus EPS estimate being $10.54.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- ...

Elevance Health 1Q 2024 Earnings Presentation April 18, 2024 • 1Q 2024 adjusted operating gain of $3.1B grew 7.3% year-over-year Strategic Priorities 3 1Q 2024 Results Health Benefits • Health Benefits delivered solid results Key Highlights | --- | --- | --- | --- | |----------------------|---------|---------|----------------| | Carelon | 1Q 2024 | 1Q 2023 | Change (%/bps) | | Operating Revenue1 | $12.1B | $11.5B | 5.2% | | Operating Gain 1 | $813M | $741M | 9.7% | | Operating Margin 1 | 6.7% | 6.5% | 20 bp ...

Elevance Health (ELV) came out with quarterly earnings of $10.64 per share, beating the Zacks Consensus Estimate of $10.54 per share. This compares to earnings of $9.46 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 0.95%. A quarter ago, it was expected that this health insurer would post earnings of $5.55 per share when it actually produced earnings of $5.62, delivering a surprise of 1.26%.Over the last four quarters, the co ...

Exhibit 99.1 EARNINGS RELEASE ELEVANCE HEALTH REPORTS FIRST QUARTER 2024 RESULTS Indianapolis, IN—April 18, 2024—Elevance Health, Inc. (NYSE: ELV) reported first quarter 2024 results. "First quarter results reflect disciplined execution of our strategic initiatives during a dynamic time for our industry. We are making significant progress expanding Carelon's capabilities, scaling our flywheel for enterprise growth, and delivering results for all stakeholders. Given the solid start to the year, we have incre ...

Investors are always looking for stocks that are poised to beat at earnings season and Elevance Health, Inc. (ELV) may be one such company. The firm has earnings coming up pretty soon, and events are shaping up quite nicely for their report.That is because Elevance is seeing favorable earnings estimate revision activity as of late, which is generally a precursor to an earnings beat. After all, analysts raising estimates right before earnings — with the most up-to-date information possible — is a pretty good ...

Elevance Health Inc. (ELV) inked an agreement with the private investment firm, Clayton, Dubilier & Rice (“CD&R”). The partnership aims to launch an enhanced primary care offering across several U.S. regions by incorporating specific care delivery and enablement assets from three care providers, ELV’s Carelon Health and two portfolio companies of CD&R, apree health and Millennium Physician Group (“MPG”). Elevance Health’s investment in the recently announced tie-up will be a blend of cash and its stake in c ...

Elevance Health, Inc. (ELV) is set to beat on earnings for the first quarter of 2024, the results for which are scheduled to be released on Apr 18, before the opening bell.What Do the Estimates Say?The Zacks Consensus Estimate for first-quarter earnings per share of $10.52 suggests an 11.2% increase from the prior-year figure of $9.46. The consensus mark remained stable over the past week. The consensus estimate for first-quarter revenues of $42.4 billion indicates a 1.2% increase from the year-ago reported ...

Elevance Health (ELV) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended March 2024. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on April 18 ...