Anthem reported earnings beating analysts expectations with Q1 EPS of $6.03 vs analysts estimate of $5.86. The company reported first quarter financial results that were driven by solid membership growth across all lines of business.Highlights:
- First quarter net income was $5.91 per share, including net negative adjustment items of $0.12 per share. Adjusted net income was $6.03* per share.
- Operating revenue grew by 9.2% over the prior year quarter to $24.4 billion.
- Medical enrollment increased by 905 thousand members sequentially to 40.8 million members.
- Operating gain was $1.9 billion, an increase of 3.9% over the prior year quarter.
- Second quarter 2019 dividend of $0.80 per share declared to shareholders.
Guidance Full Year 2019:
- GAAP net income is now expected to be greater than $18.27 per share, including approximately $0.93 per share of net unfavorable items. Excluding these items, adjusted net income is now expected to be greater than $19.20* per share.
- Medical membership is expected to be in the range of 40,900,000 - 41,300,000. Fully-insured membership is expected to be in the range of 15,500,000 - 15,700,000 and self-funded membership is expected to be in the range of 25,400,000 - 25,600,000.
- Operating revenue is expected to be approximately $100.0 billion, including premium revenue of $90.5 billion - $92.5 billion.
- Benefit expense ratio is expected to be in the range of 86.2% plus or minus 30 basis points.
- Cost of products sold is expected to be $1.6 billion - $1.8 billion.
- SG&A ratio is expected to be in the range of 13.5% plus or minus 30 basis points.
- Operating cash flow is expected to be greater than $5.2 billion.
Read the full earnings report here: https://tinyurl.com/y4tclpou