Elevance Health (NYSE: ELV), the giant insurance company, had a strong performance in the first quarter as the number of insurance enrolments increased. Its revenue and earnings per share (EPS) were better than estimates.
Elevance said that its revenue jumped to $41.9 billion in the first quarter a 10.6% increase from what it made in the same quarter last year. The company attributed this growth to higher enrolments as the number of customers jumped by more than 1.3 million to 48.1 million.
Elevance also attributed this performance to growth in Medicaid, Medicare Advantage, and Obamacare plan members. Meanwhile, the company said that its operating cash flow was about $6.5 billion, helped by premium receipts from CMS.
Elevance Health has continued buying back its stock. In Q1, it repurchased shares worth more than $622 million. It now has over $6.3 billion of the recent share repurchase plan training. In all, the company’s outstanding shares have fallen from 264 million in 2018 to 242 million. In the same period, its earnings per share (EPS) has jumped from $14.19 to $24.8. The CEO said:
““Through our diverse and expanding offering of products and solutions, and our alignment with high-performing, value-based care providers, we continue to meet the needs of consumers, customers and the communities we serve.”
Still, like other banks and insurance companies, Elevance Health is facing challenges as interest rates rise. The firm disclosed that its net unrealized loss in its investment portfolio rose to $1.8 billion. Elevance stock price dropped by over 1.8% in the premarket session.
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