Elevance Health Inc. (formerly known as Anthem, Inc.) posted strong results for the second quarter of 2022, raising its end-of-year earnings projection and earning praise from Wall Street. However, the company’s strong results — which were driven by high profitability in Medicare, Medicaid and PBM earnings — could be less robust in the third quarter, executives said, with COVID-19 surging once again due to the BA.5 variant.
The insurer reported adjusted earnings per share (EPS) of $0.29, which beat the Wall Street consensus of approximately $0.28 by 4%, according to Evercore ISI analyst Michael Newshel. According to an Elevance press release, revenue grew by 15.6% year over year to reach $38.5 billion, while profits grew by 13.7% year over year to nearly $2.4 billion. Enrollment reached 47.1 million members, up 2.7 million or 6.1% year over year. The medical loss ratio (MLR) companywide was 87%.