NYSE$ELV

Elevance Health Inc · Q4 2019 earnings

Q4 2019 earnings · · Investor relations

Briefing

Anthem reported strong Q4 2019 results, driven by double-digit top and bottom-line growth and the successful launch of IngenioRx.

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.

Headline financials

Total Revenue

$27.1B

Previous: $23.3B+16.4%
EPS (adj)

$3.88

Previous: $2.44+59.0%
Total Medical Membership

41.0M

Previous: 39.9M+2.7%
Capital Expenditures

$351M

Previous: $320M+9.7%
Free Cash Flow

$976M

Previous: $143M+582.5%
Net Income

$934M

Previous: $425M+119.8%
Operating Income

$1.1B

Previous: $726M+51.2%
Gross Profit

$6.02B

Previous: $4.44B+35.8%
Cash & Equivalents

$4.94B

Previous: $3.93B+25.5%
Total Assets

$77.5B

Previous: $71.6B+8.2%
Stock-Based Comp

$68M

Previous: $91M-25.3%

Revenue & EPS history

Elevance Health · Revenue · Quarterly

$27.1B

Q4 2019+16.4%vs Q4 2018
Beat estimate in 15 of 16 quarters(94%)
ActualEstimate

Revenue by segment

Elevance Health · $36.7B total across 1 segment · Q3 2023

  • Health Benefits
    $36.7B

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.

Tailwinds

  • 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.

Headwinds

  • 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.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q4 2019

Historical avgQ4 2019

-0.1%

Avg return

Earnings day

+0.8%

Avg return

5 days after

+2.4%

Avg return

30 days after

54%

25 / 46 earnings

Positive

+11.1%

Q4 2018

Best reaction

-15.0%

Q3 2024

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+2.3%+8.5%+20.3%
Q4 2025+5.1%+5.9%-0.9%
Q3 2025-1.1%-3.3%-11.3%
Q2 2025+0.3%+6.0%+5.9%
Q1 2025+2.1%+3.7%-5.5%
Q4 2024+2.9%+3.8%-1.4%
Q3 2024-15.0%-15.5%-19.4%
Q2 2024-8.7%-8.9%-1.7%
Q1 2024+4.1%+4.7%+7.6%
Q4 2023+1.8%+3.0%+8.9%
Q3 2023-0.6%-3.0%-0.6%
Q2 2023+7.2%+6.2%+4.3%
Q1 2023-5.8%-4.2%-5.2%
Q4 2022+3.6%+2.2%-0.1%
Q3 2022+2.0%+10.1%+3.6%
Q2 2022-7.6%-5.3%+1.2%
Q1 2022+1.1%-2.0%-4.7%
Q4 2021-0.8%+0.4%+3.3%
Q3 2021+9.3%+10.4%+5.5%
Q2 2021-1.4%-2.9%-3.1%
Q1 2021-0.5%-1.1%+3.7%
Q4 2020-3.8%-6.4%-3.0%
Q3 2020-8.6%-6.9%+4.7%
Q2 2020+4.5%+2.1%+4.5%
Q1 2020+4.7%+1.0%+9.7%
Q4 2019-8.4%-8.2%-11.4%
Q3 2019-0.3%+2.9%+12.1%
Q2 2019-2.9%-1.4%-13.9%
Q1 2019+2.1%+6.2%+10.6%
Q4 2018+11.1%+11.6%+12.8%
Q3 2018+0.2%+1.4%+9.3%
Q2 2018+0.4%+2.5%+7.8%
Q1 2018+5.3%+4.9%+3.3%
Q4 2017+0.2%-5.3%-4.3%
Q3 2017+6.0%+7.3%+12.9%
Q2 2017-3.7%-2.3%+1.1%
Q1 2017+3.4%+3.9%+6.2%
Q4 2016+2.3%+1.7%+7.7%
Q3 2016+2.2%+5.2%+23.6%
Q2 2016-3.4%-7.3%-9.2%
Q1 2016-2.1%
Q4 2015-8.2%
Q3 2015-2.3%
Q2 2015+0.4%
Q1 2015-2.1%
Q4 2014-0.5%
Q3 2014
Q2 2014
Q1 2014
Q4 2013
Q3 2013
Q2 2013
Q1 2013
Q4 2011
Q4 2012
Q3 2012
Q2 2012
Q1 2012
Q3 2011
Q2 2011
Q1 2011
Q4 2010
Q3 2010
Q2 2010
Q1 2009
Q1 2010
Q4 2007
Q4 2009
Q3 2009
Q3 2008
Q4 2008
Q2 2009
Q2 2008

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