Will a Strong MA Business Aid Elevance Health's Q1 Earnings?

Core Viewpoint - Elevance Health, Inc. is expected to report first-quarter 2025 results on April 22, with earnings estimated at $11.09 per share, reflecting a 4.2% increase year-over-year, and revenues projected at$ 46 billion, indicating an 8.7% growth from the previous year [1] Earnings Estimates - The earnings estimate for Q1 has seen three upward revisions in the last 30 days, with no downward movements [1] - The current earnings estimate of $11.09 per share has increased from$ 10.65 two months ago, showing a trend of positive revisions [2] Earnings Surprise History - Elevance Health has beaten earnings estimates in three of the last four quarters, with an average negative surprise of 2.60% [2] Earnings Prediction Model - The model indicates a likely earnings beat for Elevance Health, supported by a positive Earnings ESP of +4.75% and a Zacks Rank of 3 [3][4] Revenue Drivers - The anticipated growth in results is attributed to higher premiums driven by strong Medicare Advantage membership growth and strength in Carelon businesses [5] - The Zacks Consensus Estimate for premiums is $38.7 billion, reflecting an 8.3% increase year-over-year, while Medicare Advantage membership is expected to grow by 9.8% [6] Segment Performance - The Health Benefits segment is projected to see operating income of$ 2.2 billion, a decline of 2.5% year-over-year, primarily due to reduced Medicaid membership [8] - The Carelon segment is expected to report operating income of $956 million, indicating a 17.6% year-over-year growth [9] Expense Outlook - Elevated expenses are anticipated due to significant investments in digital capabilities, with total expenses expected to rise by 7.1% year-over-year [10]