Elevance Health Reports Strong Q2 2024 Results

By Tamara Parker • Wednesday, July 17 08:01 • Permanent Link

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.

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