Elevance Health Inc.'s (ELV) stock rose 5% in premarket trade today after the health insurer announced its second-quarter earnings, which surpassed expectations. The company reported a net income of $1.853 billion, or $7.79 per share, for the quarter, demonstrating significant growth from $1.637 billion, or $6.73 per share, in the same period last year.
Adjusted per-share earnings reached $9.04, comfortably surpassing the FactSet consensus of $8.78. Additionally, revenue demonstrated a notable increase of 12.7%, rising from $38.632 billion to $43.672 billion, also exceeding the FactSet consensus of $41.636 billion.
With the exceptional performance witnessed in the first half of this year and the continuous momentum across Elevance Health, the company stated that it now anticipates GAAP net income to be greater than $29.09 per share in 2023, with adjusted net income projected to be higher than $32.85 per share. This outlook surpasses the current FactSet consensus expectation of full-year EPS of $32.77.
During the quarter, Elevance Health successfully reduced its benefit expense ratio to 86.4%, marking a decrease of 70 basis points compared to the same period last year. This achievement is primarily attributed to premium rate adjustments that more accurately reflect the cost of care. It is important to note that health insurers have experienced rising costs throughout this year due to delayed hip and knee surgeries caused by the COVID-19 pandemic.
Although Elevance's stock has experienced a 13% decline year-to-date, it is important to recognize that the overall market, as represented by the S&P 500, has seen significant gains of 18.6%.
Elevance Health Inc.'s impressive Q2 earnings report highlights its commitment to delivering exceptional results while navigating the challenges posed by the ongoing pandemic. With its strong financial performance and optimistic outlook, the company remains well-positioned in the healthcare industry.
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