Elevance Health's Q1 Earnings Beat Estimates on Rising Premiums

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]