2023-07-19 07:02:16 ET
Elevance Health ( NYSE: ELV ) added ~4% pre-market Wednesday after raising its full-year guidance ahead of consensus on the back of better-than-expected Q2 2023 results.
Similarly, about three months ago, with its Q1 2023 results, ELV which dominates the market for Medicaid health insurance, raised its full-year guidance for adjusted earnings per share to more than $32.70, citing a strong start to the year.
"Our solid execution and continued progress of our strategy to become a lifetime trusted health partner resulted in strong second quarter and first half results," CEO Gail Boudreaux noted ahead of the conference call at 8:30 a.m. on Wednesday.
Due to strong H1 performance and momentum across the business, ELV estimates its GAAP net income and adjusted net income for 2023 could exceed $29.09 and $32.85 per share, respectively, compared to $32.74 in the consensus.
Meanwhile, the company’s topline and bottom line for the quarter also exceeded Wall Street forecasts, as operating revenue for the quarter jumped ~13% YoY to $43.4B and Medical enrollments grew 938K to 48M.
However, total Medicaid membership fell ~1% from the end of March to 11.7M amid the resumption of Medicaid eligibility redeterminations following a pause in the pandemic.
Meanwhile, the benefit expense ratio, the proportion of premium income paid out as healthcare costs, fell 70bps to 86.4% compared to 86.9% in the consensus.
Driven by the better than expected benefit expense ratio and an operating expense ratio that remained flat from last year at 11.1%, the GAAP net income per share improved ~16% YoY to $7.79 even with a net negative adjustment of $1.25 per share.
Elevance’s ( ELV ) rivals in the Medicaid market include Centene Corporation ( CNC ) and Molina Healthcare ( MOH ).
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Elevance Health gains after raising guidance above consensus