Earnings Preview: Elevance Health (ELV) Q2 Earnings Expected to Decline

Core Viewpoint - The market anticipates Elevance Health (ELV) will report a year-over-year decline in earnings despite higher revenues in its upcoming earnings report for the quarter ended June 2025 [1] Earnings Expectations - Elevance Health is expected to post quarterly earnings of $9.20 per share, reflecting a year-over-year decrease of 9.1% [3] - Revenues are projected to reach $48.13 billion, representing an increase of 11.4% compared to the same quarter last year [3] Estimate Revisions - The consensus EPS estimate has remained unchanged over the last 30 days, indicating a stable outlook from covering analysts [4] - The Most Accurate Estimate for Elevance Health is lower than the Zacks Consensus Estimate, leading to an Earnings ESP of -5.05%, suggesting a bearish sentiment among analysts [12] Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that a positive or negative reading can predict the likelihood of actual earnings deviating from consensus estimates, with positive readings being more reliable [9][10] - A positive Earnings ESP combined with a Zacks Rank of 1, 2, or 3 has shown a nearly 70% success rate in predicting earnings beats [10] Historical Performance - In the last reported quarter, Elevance Health exceeded expectations by delivering earnings of $11.97 per share against an expected $11.21, resulting in a surprise of +6.78% [13] - Over the past four quarters, the company has beaten consensus EPS estimates three times [14] Conclusion - While Elevance Health does not currently appear to be a strong candidate for an earnings beat, investors should consider other influencing factors when making investment decisions ahead of the earnings release [17]