On Thursday, Elevance Health Inc. (NYSE:ELV) reported third-quarter revenues of $44.7 billion, up 5.3% year-over-year, beating the consensus of $43.33 billion.
The rise was driven by higher premium yields within the Health Advantages segment and growth in CarelonRx product revenue, partially offset by membership attrition in the Medicaid business.
The profit expense ratio was 89.5%, a rise of 270 basis points, driven primarily by the timing mismatch between Medicaid rates and the upper acuity of members.
“We remain confident within the long-term earnings potential of our diverse businesses as we navigate a dynamic operating environment and unprecedented challenges within the Medicaid business. We expect Medicaid rates will align with the needs of our members in time, and are taking proactive actions to reinforce operational efficiencies that can ensure we emerge from this era even stronger,” said Gail Boudreaux, President & CEO.
Also Read: Evolent Health Explores Sale, Garners Inbound Interest From Private Equity Firms.
Premiums rose 4.4% to $36.81 billion, and product revenue rose 13.7% to $5.89 billion. Services fees fell 1% to $2.02 billion.
Profit fell 21% to $1.02 billion, or $4.36 a share. Per-share adjusted earnings reached $8.37, down from $8.99 a yr ago, missing the consensus of $9.66.
Medical membership totaled roughly 45.8 million, a decrease of 1.5 million, or 3%, driven by attrition within the Medicaid business related to eligibility redeterminations and footprint adjustments in certain Medicaid states.
Health Advantages segment operating revenue was $38.3 billion, a rise of $1.5 billion in comparison with the prior yr quarter, driven primarily by higher premium yields, partially offset by membership attrition within the Medicaid business.
Operating revenue for Carelon was $13.8 billion, up 15%, driven by the launch and growth of risk-based capabilities in Carelon Services and growth in CarelonRx product revenue related to the acquisition of Paragon Healthcare in the primary quarter and increases in external members served.
Guidance: Elevance Health expects GAAP net income per diluted share of roughly $26.50 versus the prior guidance of no less than $34.05.
The corporate forecasts an adjusted EPS of $33.00, down from the prior guidance of no less than $37.20 and the consensus of $37.26.
Price Motion: ELV stock is down 12.3% at $436.00 through the premarket session on the last check Thursday.
Read Next:
Photo by Jonathan Weiss via Shutterstock
Up Next: Transform your trading with Benzinga Edge’s one-of-a-kind market trade ideas and tools. Click now to access unique insights that may set you ahead in today’s competitive market.
Get the most recent stock evaluation from Benzinga?
This text Elevance Health’s Q3 Earnings: Profit Falls Short Of Expectations On Higher Medical Costs, Issues Soft Annual Outlook originally appeared on Benzinga.com
© 2024 Benzinga.com. Benzinga doesn’t provide investment advice. All rights reserved.