Elevance Health 1Q Revenue Rises, Membership Keeps Declining; Raises Guidance
By Sabela Ojea
Elevance Health said revenue rose slightly in the first quarter due to higher premium yields amid an additional decline in its membership base, and raised its adjusted earnings per share guidance for the year.
The health insurer and healthcare-services provider posted a net income of $2.25 billion, or $9.59 a share, compared with $2.0 billion, or $8.30 a share, for the same period a year earlier.
Stripping out one-time items, the company's earnings per share came in at $10.64. Analysts polled by FactSet had forecast lower adjusted earnings per share of $10.52.
Revenue rose 1% to $42.58 billion, coming below analysts expectations of $42.89 billion, according to FactSet. The company saw growth in Carelon, which is comprised of CarelonRx and Carelon Services.
Membership fell to 46.2 million from 47 million in the December and 47.3 million as of Sept. 30. The decline was driven by attrition in its Medicaid business associated with eligibility redeterminations and expected footprint adjustments, Elevance said.
The benefit expense ratio, a measure of the proportion of premiums paid out in healthcare costs, improved 20 basis points to 85.6% due to premium rate adjustments to cover medical cost trend in its health benefits business.
The company said it now expects net income per share to be greater than $34.05 in 2024 and adjusted diluted net income per share to be greater than $37.20.
In January, Elevance said it expected earnings and adjusted earnings per share of more than $34.29 and $37.10, respectively.
Write to Sabela Ojea at sabela.ojea@wsj.com; @sabelaojeaguix
(END) Dow Jones Newswires
April 18, 2024 06:47 ET (10:47 GMT)
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