Anthem, Inc.’s third-quarter 2020 earnings were not as robust as investors had hoped at the start of the year due to the insurer’s obligation to pay out its $594 million share of a recently settled lawsuit against Blue Cross Blue Shield plans. Despite that, Wall Street analysts were positive about the firm’s outlook for the rest of the year.
The insurer reported that its quarterly adjusted net income was $4.20 per share, which Citi analyst Ralph Giacobbe said beat a Wall Street consensus projection of $4.12. Anthem CEO Gail Boudreaux said during an Oct. 28 earnings call that the earnings per share (EPS) figure was down 14% year over year. Anthem posted a medical loss ratio (MLR) of 86.8%, which Giacobbe noted was lower than a consensus 87.2%. Anthem’s revenues increased by 15.9% year over year to $30.6 billion, which Chief Financial Officer John Gallina attributed largely to growth in the firm’s Medicare and Medicaid businesses. The firm projects end-of-year earnings to exceed $22.30 per share.