Elevance Health, a leading health insurer and healthcare-services provider, formerly known as Anthem, has announced impressive financial results for the fourth quarter. The company’s revenue growth was driven by its Carelon unit, showcasing its commitment to delivering high-quality healthcare solutions.
Robust Profitability
In the fourth quarter, Elevance Health reported a profit of $856 million, equivalent to $3.63 per share. This performance compares favorably to the $865 million, or $3.59 per share, recorded in the same quarter the previous year. The company’s ability to maintain strong profitability amid market challenges is commendable.
Adjusted Earnings Exceed Expectations
After excluding certain one-time items such as losses on financial instruments and amortization, Elevance Health’s adjusted earnings stood at an impressive $5.62 per share. This figure exceeded analysts’ expectations of $5.60 per share, as reported by FactSet. The company’s consistent focus on aligning its operations has evidently paid off.
Substantial Revenue Growth
Elevance Health witnessed a notable 7% increase in revenue, totaling $42.45 billion for the quarter. This result surpassed analysts’ projections of $42.19 billion. The company owes its success to higher premium revenue from its health-benefits business and increased pharmacy-product revenue from its CarelonRx unit. Notably, Elevance Health’s acquisition of the BioPlus specialty pharmacy in 2023 played a significant role in boosting pharmacy-product revenue.
Promising Business Segments
Within its health-benefits unit, Elevance Health experienced a remarkable revenue growth of over 4%. This indicates its continued ability to attract and retain customers seeking comprehensive health insurance coverage. Moreover, its Carelon unit demonstrated exceptional performance with revenue gains of 14%, affirming the business’s success in delivering top-notch healthcare services.
Outlook for 2024
Elevance Health is optimistic about its prospects for the upcoming year. The company aims to achieve adjusted earnings of over $37.10 per share, surpassing analysts’ expectations of $37.03 per share. Additionally, Elevance Health anticipates achieving flat to low-single digit percentage growth in operating revenue, highlighting its commitment to sustainable long-term growth.