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Dec 31, 2019
Elevance Health Q4 2019 Earnings Report
Anthem reported strong Q4 2019 results, driven by double-digit top and bottom-line growth and the successful launch of IngenioRx.
Key Takeaways
Anthem, Inc. reported a strong fourth quarter and full year 2019, marked by double-digit revenue and earnings growth. The successful launch of IngenioRx and significant organic risk-based growth contributed to the positive results. The company's medical enrollment reached 41 million lives, and operating revenue increased by 16.4% year-over-year to $27.1 billion.
Fourth quarter net income was $3.62 per share, including net negative adjustment items of $0.26 per share; adjusted net income was $3.88 per share.
Operating revenue for the fourth quarter grew by 16.4% year-over-year, reaching $27.1 billion.
Medical enrollment reached 41 million lives by year-end, with a growth of 1.1 million members year-to-date, driven by risk-based businesses.
The company anticipates full year 2020 GAAP net income to be greater than $21.44 per share, and adjusted net income to be greater than $22.30 per share.
Elevance Health
Elevance Health
Forward Guidance
Full year 2020 GAAP net income is expected to be greater than $21.44 per share. Adjusted net income is expected to be greater than $22.30 per share.
Positive Outlook
- Medical membership is expected to be in the range of 41.9 - 42.3 million.
- Operating revenue is expected to be approximately $117 billion, including premium revenue of $101 billion - $103 billion.
- Operating cash flow is expected to be greater than $6.4 billion.
- Full year 2020 GAAP net income is expected to be greater than $21.44 per share.
- Adjusted net income is expected to be greater than $22.30 per share.
Challenges Ahead
- Benefit expense ratio is expected to be in the range of 85.8% plus or minus 50 basis points.
- SG&A ratio is expected to be in the range of 12.8% plus or minus 30 basis points.
- Investment income is expected to be $970 million.
- Effective tax rate is expected to be between 24.0% - 26.0%.
- Share count is expected to be between 255 - 257 million.