Elevance Health (ELV) Beats EPS Expectations at $10.64 in Q1, Revenue Miss
Elevance Health, Inc. (NYSE: ELV) showcased strategic advancements with operating revenue reaching $42.3 billion in the Q1.
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Elevance Health, Inc. (NYSE: ELV) has reported its financial results for the first quarter of 2024, showcasing disciplined execution and strategic advancements in the healthcare industry. The company’s operating revenue for the quarter was $42.3 billion, a 0.9% increase from the first quarter of 2023.
This growth was primarily driven by higher premium yields aligned with medical cost trends and development in Carelon, including a full quarter of revenue from BioPlus, which was acquired in February 2023. However, this growth was partially offset by attrition in Medicaid membership.
Additionally, the company saw a 15.5% increase in diluted EPS to $9.59 and a 12.5% increase in adjusted diluted EPS to $10.64, reflecting strong financial performance and operational efficiency.
Elevance Health Beats EPS Expectations in Q1, Misses on Revenue
Elevance Health’s performance in the first quarter of 2024 has exceeded expectations in some areas while narrowly missing others. Analysts had projected an EPS of $10.48 and revenue of $42.47 billion for the quarter. The actual EPS of $10.64 surpassed expectations, demonstrating the company’s ability to generate profit beyond what was anticipated.
However, revenue of $42.3 billion fell slightly short of the forecast, indicating a minor deviation in growth projections. Despite this, the company’s overall financial health remains robust, with significant improvements in operating gain and margin compared to the previous year.
The operating gain for the quarter was $3.0 billion, up from $2.8 billion in 1Q 2023, and the operating margin improved to 7.1% from 6.8% in the same period.
Elevance Health Raises Guidance for 2024, Expects Net Income Per Diluted Share to Be Over $34.05
Looking ahead, Elevance Health has raised its guidance for 2024, now expecting net income per diluted share to be greater than $34.05 and adjusted diluted net income per share to be greater than $37.20.
This optimistic outlook is supported by the company’s strategic initiatives, including a significant partnership with Clayton, Dubilier & Rice to advance primary care and physician enablement. This partnership is expected to accelerate innovation in care delivery, enhance healthcare experiences, and improve health outcomes, further advancing Elevance Health’s value-based care and physician enablement strategy.
Disclaimer: The author does not hold or have a position in any securities discussed in the article.
Tim Fries
Tim Fries is the cofounder of The Tokenist. He has a B. Sc. in Mechanical Engineering from the University of Michigan, and an MBA from the University of Chicago Booth School of Business. Tim served as a Senior Associate on the investment team at RW Baird's US Private Equity division, and is also the co-founder of Protective Technologies Capital, an investment firm specializing in sensing, protection and control solutions.
