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• GAAP Diluted EPS (Q4 2024): $1.81

• Adjusted Diluted EPS (Q4 2024): $3.84

• Full-Year Adjusted Diluted EPS (2024): $33.04

• Total Operating Revenue (2024): $175.2 billion, up approximately 3% year-over-year

• Consolidated Benefit Expense Ratio (Q4 2024): 92.4%

• Full-Year Benefit Expense Ratio (2024): 88.5%

• Adjusted Operating Expense Ratio (Q4 2024): 9.9%

• Full-Year Operating Expense Ratio (2024): 10.6%

• Operating Cash Flow (2024): $5.8 billion

• Membership (End of 2024): 45.7 million, a decrease of 1.1 million year-over-year

• Share Repurchases (Q4 2024): 4.5 million shares for $1.8 billion

• Full-Year Share Repurchases (2024): $2.9 billion

• Dividend Increase: 5% increase to $1.71 per share

• 2025 Adjusted EPS Guidance: $34.15 to $34.85

• 2025 Projected Operating Revenue Growth: High single to low double-digit percent range

• 2025 Projected Medical Membership: 45.8 million to 46.6 million

• 2025 Projected Operating Cash Flow: Approximately $8 billion

• Warning! GuruFocus has detected 3 Warning Sign with AUB.

Release Date: January 23, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Elevance Health Inc (NYSE:ELV) reported fourth-quarter adjusted diluted earnings per share of $3.84, consistent with prior expectations.

• The company achieved strong member retention in its Medicare Advantage business, with anticipated membership growth of 7% to 9% for 2025.

• Elevance Health's commercial businesses performed well in 2024, with record retention in national accounts and strong growth in individual exchange business.

• The acquisition of CareBridge is expected to bolster home- and community-based services, aligning with the company's focus on whole health.

• Elevance Health plans to allocate approximately $2.3 billion towards share repurchases in 2025, demonstrating a commitment to returning capital to shareholders.

Negative Points

• Elevance Health experienced elevated cost trends in its Medicaid business, which remain a challenge due to insufficient rates to cover costs.

• The company reported a decrease of 1.1 million members year over year, primarily due to Medicaid redeterminations and geographic changes.

• Medicaid cost trends are expected to remain elevated in the first half of 2025, impacting margins until rate adjustments are fully reflected.

• The operating margin for health benefits is expected to decline by 25 to 50 basis points year over year in 2025.

• Elevance Health's Medicare Advantage margins are expected to remain below long-term targets despite anticipated stability in 2025.

Q & A Highlights

Q: Can you provide more details on your Medicare Advantage enrollment and margin expectations for 2025? A: Gail Boudreaux, President and CEO, stated that they are confident in their Medicare Advantage enrollment guidance, which aligns with their expectations. Felicia Norwood, President of the Government Business Division, added that the annual enrollment period performance was strong, driven by member retention and stability in offerings. They expect Medicare Advantage membership growth of 7% to 9% and are positioned for margin stability in 2025 through disciplined cost management and strong retention.