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Elevance Health
🇺🇸 NYSE:ELV
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Dec 31, 2020

Elevance Health Q4 2020 Earnings Report

Anthem reported strong Q4 2020 results, demonstrating growth across all businesses despite pandemic uncertainties.

Key Takeaways

Anthem, Inc. reported a solid fourth quarter in 2020, marked by a 16.2% increase in operating revenue to $31.5 billion, driven by growth in Medicaid and Medicare, as well as pharmacy product revenue and the return of the health insurance tax. GAAP net income per share was $2.19, with an adjusted net income per share of $2.54. Medical enrollment reached 42.9 million members, a 4.7% increase year-over-year.

Operating revenue increased by 16.2% to $31.5 billion, driven by growth in Medicaid and Medicare, pharmacy product revenue, and the return of the health insurance tax.

GAAP net income was $2.19 per share, and adjusted net income was $2.54 per share.

Medical enrollment totaled approximately 42.9 million members, an increase of 4.7% from the prior year.

Operating cash flow was $3.8 billion, an increase of $2.5 billion compared to the prior year quarter.

Total Revenue
$31.5B
Previous year: $27.1B
+16.2%
EPS
$2.54
Previous year: $3.88
-34.5%
Total Medical Membership
42.93M
Previous year: 41M
+4.7%
Gross Profit
$7.74B
Previous year: $6.02B
+28.4%
Cash and Equivalents
$5.74B
Previous year: $4.94B
+16.3%
Free Cash Flow
$3.54B
Previous year: $976M
+262.2%
Total Assets
$86.6B
Previous year: $77.5B
+11.8%

Elevance Health

Elevance Health

Elevance Health Revenue by Segment

Forward Guidance

Anthem anticipates GAAP net income to exceed $23.51 per share for the full year 2021, which includes approximately $0.99 per share of net unfavorable items. Adjusted net income is expected to be greater than $24.50 per share. Medical membership is projected to be in the range of 44.1 to 44.7 million, and operating revenue is expected to be approximately $135.1 billion.

Positive Outlook

  • GAAP net income is expected to be greater than $23.51 per share.
  • Adjusted net income is expected to be greater than $24.50 per share.
  • Medical membership is expected to be in the range of 44.1 - 44.7 million.
  • Operating revenue is expected to be approximately $135.1 billion.
  • Operating cash flow is expected to be greater than $5.7 billion.

Challenges Ahead

  • Adjusted net income guidance includes a net negative headwind of $0.50-$0.70 due to the Consolidated Appropriations Act and COVID-19 related impacts on the Medicare business.
  • Benefit expense ratio is expected to be in the range of 88.0% plus or minus 50 basis points.
  • SG&A ratio is expected to be 10.8% plus or minus 50 basis points.
  • Interest expense is expected to be $785 million.
  • Effective tax rate is expected to be between 20.0 - 22.0%.

Revenue & Expenses

Visualization of income flow from segment revenue to net income

Company Overview

Full financial data and analysis

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