The company now projects adjusted earnings of at least $29 per share for the year, a significant jump from its previous guidance of $27. This optimism follows a quarterly performance where revenue climbed 1.4% to $51.43 billion, outpacing market forecasts that anticipated a decline. Growth was fueled by strong results at CarelonRx, the firm’s pharmacy benefit manager, and improved service fee income.
In section Market Quotes
Elevance Health Boosts Annual Forecast After Strong Third Quarter
Higher premium yields and surging revenue from its pharmacy division pushed Elevance Health to raise its full-year earnings outlook, despite a contraction in total membership. The insurer reported third-quarter net income of $1.34 billion, handily beating analyst expectations as medical costs stabilized across its key coverage plans.
Efficiency gains in Medicare Advantage and Affordable Care Act plans helped the insurer’s benefit-expense ratio improve by 70 basis points to 90.6%. While these operational successes bolstered the bottom line, the company’s total medical membership fell by 487,000 to 44.9 million as of September 30. Investors responded to the updated guidance in premarket trading, pushing shares up 2.1% to $449.49.
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