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Elevance Health
🇺🇸 NYSE:ELV
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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.

Total Revenue
$27.1B
Previous year: $23.3B
+16.4%
EPS
$3.88
Previous year: $2.44
+59.0%
Total Medical Membership
41M
Previous year: 39.94M
+2.7%
Gross Profit
$6.02B
Previous year: $4.44B
+35.8%
Cash and Equivalents
$4.94B
Previous year: $3.93B
+25.5%
Free Cash Flow
$976M
Previous year: $143M
+582.5%
Total Assets
$77.5B
Previous year: $71.6B
+8.2%

Elevance Health

Elevance Health

Elevance Health Revenue by Segment

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.

Revenue & Expenses

Visualization of income flow from segment revenue to net income

Company Overview

Full financial data and analysis

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