ELV

Elevance Health Reports Strong Q2 2024 Results

Elevance Health, Inc. (NYSE: ELV) has reported its second quarter 2024 results, showing a mixed bag of figures across various metrics. The company's operating revenue for the quarter was $43.2 billion, down slightly from the $43.4 billion reported in the same period the previous year. However, the adjusted operating gain for the quarter was $2.8 billion, marking an increase from the $2.6 billion reported in the second quarter of 2023.

The company's operating margin for the quarter was 16.4%, a significant improvement from the 6.1% reported in the same period last year. On the other hand, the operating expense ratio increased to 11.7%, up by 60 basis points from the previous year. When adjusted for specific items, the operating expense ratio was 11.5%, reflecting an increase of 50 basis points.

Earnings per diluted share (EPS) for the quarter stood at $9.85, marking a noteworthy 26% increase from the same period in 2023. Adjusted diluted EPS also saw a healthy increase, rising by 12% to $10.12.

The company's health benefits segment reported operating revenue of $37.2 billion for the quarter, down 2% from the previous year. However, the operating gain for this segment remained steady at $2.1 billion. The medical membership totaled approximately 45.8 million, a decrease of 5% compared to the prior year quarter.

In contrast, the Carelon segment reported an increase in operating revenue, which stood at $13.3 billion, marking a 10% increase from the previous year. The operating gain for this segment also saw a notable increase, rising by 8% to $0.7 billion.

Looking ahead, Elevance Health expects GAAP net income per diluted share to be at least $34.05 in 2024, with adjusted diluted net income per share projected to be at least $37.20.

The company's cash flow and balance sheet also saw some changes, with operating cash flow for the year-to-date period amounting to $2.4 billion, reflecting a decrease of $6.0 billion year-over-year. The company also repurchased 0.9 million shares of its common stock for $462 million during the second quarter of 2024 and paid a quarterly dividend of $1.63 per share, representing a distribution of cash totaling $378 million.

Following these announcements, the company's shares moved 4.2%, and are now trading at a price of $553.14. For the full picture, make sure to review Elevance Health's 8-K report.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.

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