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Jun 30, 2020

Elevance Health Q2 2020 Earnings Report

Anthem reported second quarter results, reaffirming commitment to stakeholders during the COVID-19 pandemic.

Key Takeaways

Anthem reported a strong second quarter with significant growth in operating revenue and adjusted net income per share, driven by pharmacy product revenue and growth in Medicaid and Medicare. The company also saw a decrease in the benefit expense ratio due to the deferral of healthcare utilization during the COVID-19 pandemic.

Medical enrollment totaled 42.5 million members, an increase of 309 thousand lives compared to March 31, 2020.

Operating revenue was $29.2 billion, an increase of 15.9 percent versus the prior year quarter, driven by pharmacy product revenue related to the launch of IngenioRx.

GAAP net income was $8.91 per share, and adjusted net income was $9.20 per share.

Operating cash flow was $5.5 billion, an increase of $4.1 billion compared to the prior year quarter.

Total Revenue
$29.2B
Previous year: $25.2B
+15.9%
EPS
$9.2
Previous year: $4.64
+98.3%
Total Medical Membership
42.5M
Previous year: 40.85M
+4.0%
Gross Profit
$9.72B
Previous year: $5.1B
+90.6%
Cash and Equivalents
$6.03B
Previous year: $4.08B
+47.8%
Free Cash Flow
$5.28B
Previous year: $1.22B
+334.0%
Total Assets
$88B
Previous year: $75.9B
+16.0%

Elevance Health

Elevance Health

Elevance Health Revenue by Segment

Forward Guidance

GAAP net income is expected to be greater than $20.91 per share, including approximately $1.39 per share of net unfavorable items. Excluding these items, adjusted net income is expected to be greater than $22.30 per share. Due to unprecedented uncertainty around the COVID-19 pandemic and its impact, the Company is not providing other financial guidance metrics for 2020 until visibility improves.