With the stock market going through its first earnings season of 2025, companies are making important announcements. This includes the approval of share buyback programs, as well as dividend increases.
The healthcare industry is undergoing rapid transformation, driven by advancements in technology, artificial intelligence, and data analytics. Companies at the forefront of this shift are redefining how healthcare providers manage data, deliver care, and enhance patient outcomes.
ELV's fourth-quarter results benefit from rising premiums. However, higher expenses and attrition in Medicaid membership partially offset the positives.
Shares of Elevance Health (ELV) advanced Thursday after the health insurance provider reported better-than-anticipated results on higher premiums, acquisitions, and growth of its pharmacy coverage unit. It also raised its dividend.
The headline numbers for Elevance Health (ELV) give insight into how the company performed in the quarter ended December 2024, but it may be worthwhile to compare some of its key metrics to Wall Street estimates and the year-ago actuals.
On Thursday, Elevance Health Inc. ELV reported fourth-quarter revenues of $44.99 billion, up 6% year-over-year, slightly higher than the consensus of $44.86 billion.
Elevance Health (ELV) came out with quarterly earnings of $3.84 per share, beating the Zacks Consensus Estimate of $3.80 per share. This compares to earnings of $5.62 per share a year ago.
Despite a 29% drop in Elevance Health's stock, I maintain a strong buy rating due to a DCF price target of $549.60, indicating 43% upside. ELV's shift towards managed care, with strong industry tailwinds, supports sustainable margin expansion and revenue growth, making it a compelling investment. Regulatory risks around Pharmacy Benefit Management are mitigated by CarelonRx's diversified revenue streams and a healthy margin of safety in my modeling.
The health insurer's fourth-quarter adjusted earnings top analysts' estimates.
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Elevance beat Wall Street estimates for quarterly profit on Thursday, as the health insurer spent less than expected on the medical costs of its members.
ELV's fourth-quarter earnings are likely to have benefited from growing premiums, partially offset by higher expenses.