In This Article:
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GAAP Diluted EPS: $9.61
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Adjusted Diluted EPS: $11.97, reflecting over 10% year-over-year growth
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Medical Membership: 45.8 million, up 99,000 from year-end
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Operating Revenue: $48.8 billion, an increase of over 15%
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Consolidated Benefit Expense Ratio: 86.4%, an increase of 80 basis points year-over-year
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Adjusted Operating Expense Ratio: 10.7%, an improvement of 60 basis points
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Health Benefits Operating Gain: $2.2 billion
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Carelon Operating Gain: $1.1 billion, a growth of 34%
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Net Investment Income: Exceeded expectations for the first quarter
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Debt to Capital Ratio: Approximately 41%
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Days in Claims Payable: 44 days as of March 31
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Operating Cash Flow: $1 billion
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Share Repurchases: 2.2 million shares for approximately $880 million
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Full Year Adjusted EPS Guidance: $34.15 to $34.85
Release Date: April 22, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Elevance Health Inc (NYSE:ELV) reported a strong start to 2025 with GAAP diluted earnings per share of $9.61 and adjusted diluted earnings per share of $11.97, reflecting over 10% year-over-year growth.
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The company expanded its value-based oncology care model to Medicare Advantage, following success in the commercial sector, which reduced inpatient admissions and improved treatment adherence.
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Carelon Services experienced significant growth, expanding relationships with external payers and launching new contracts in post-acute and behavioral health, validating its scalable platform for whole-person care.
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Elevance Health Inc (NYSE:ELV) completed the acquisition of CareBridge, enhancing capabilities in home and community-based services, which helps reduce ER visits and institutional stays.
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The company maintained strong retention rates in Medicare Advantage, supporting both margin and membership sustainability, and expanded into three new states to build lifetime value through coordinated ACA and Medicaid coverage.
Negative Points
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Elevance Health Inc (NYSE:ELV) faced elevated cost trends in its Medicaid business, impacting the consolidated benefit expense ratio, which increased by 80 basis points year over year.
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Individual ACA membership effectuation rates were lower than expected, leading to anticipated membership attrition in the mid-single-digit percent range in early Q2.
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The company experienced higher-than-expected flu-driven costs in Q1, impacting the benefit expense ratio by 15 to 20 basis points.
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Medicare Part D changes due to the Inflation Reduction Act resulted in a shift in earnings seasonality, with stronger financial performance expected in earlier quarters and lower margins later in the year.
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Elevance Health Inc (NYSE:ELV) is navigating elevated utilization trends in Medicare Advantage, requiring careful management of new volume and targeted growth across specific populations and geographies.