A Look Ahead: Elevance Health's Earnings Forecast

Elevance Health ELV is preparing to release its quarterly earnings on Thursday, 2024-10-17. Here's a brief overview of what investors should keep in mind before the announcement.

Analysts expect Elevance Health to report an earnings per share (EPS) of $9.66.

Investors in Elevance Health are eagerly awaiting the company's announcement, hoping for news of surpassing estimates and positive guidance for the next quarter.

It's worth noting for new investors that stock prices can be heavily influenced by future projections rather than just past performance.

Past Earnings Performance

During the last quarter, the company reported an EPS beat by $0.11, leading to a 3.11% drop in the share price on the subsequent day.

Here's a look at Elevance Health's past performance and the resulting price change:

Tracking Elevance Health's Stock Performance

Shares of Elevance Health were trading at $483.87 as of October 15. Over the last 52-week period, shares are up 5.67%. Given that these returns are generally positive, long-term shareholders should be satisfied going into this earnings release.

Analysts' Take on Elevance Health

Understanding market sentiments and expectations within the industry is crucial for investors. This analysis delves into the latest insights on Elevance Health.

Analysts have provided Elevance Health with 12 ratings, resulting in a consensus rating of Outperform. The average one-year price target stands at $595.42, suggesting a potential 23.05% upside.

Comparing Ratings with Competitors

In this analysis, we delve into the analyst ratings and average 1-year price targets of Molina Healthcare, HealthEquity and Alignment Healthcare, three key industry players, offering insights into their relative performance expectations and market positioning.

• The consensus among analysts is an Neutral trajectory for Molina Healthcare, with an average 1-year price target of $367.0, indicating a potential 24.15% downside.
• As per analysts' assessments, HealthEquity is favoring an Outperform trajectory, with an average 1-year price target of $102.14, suggesting a potential 78.89% downside.
• Alignment Healthcare received a Buy consensus from analysts, with an average 1-year price target of $10.0, implying a potential 97.93% downside.

Overview of Peer Analysis

Within the peer analysis summary, vital metrics for Molina Healthcare, HealthEquity and Alignment Healthcare are presented, shedding light on their respective standings within the industry and offering valuable insights into their market positions and comparative performance.

Key Takeaway:

Elevance Health ranks at the top for Revenue Growth among its peers. It is in the middle for Gross Profit. Elevance Health is at the bottom for Return on Equity.

Unveiling the Story Behind Elevance Health

Elevance Health remains one of the leading health insurers in the U.S., providing medical benefits to 47 million medical members as of December 2023. The company offers employer, individual, and government-sponsored coverage plans. Elevance differs from its peers in its unique position as the largest single provider of Blue Cross Blue Shield branded coverage, operating as the licensee for the Blue Cross Blue Shield Association in 14 states. Through acquisitions, such as the Amerigroup deal in 2012 and MMM in 2021, Elevance's reach expands beyond those states through government-sponsored programs such as Medicaid and Medicare Advantage plans, too.

Elevance Health's Financial Performance

Market Capitalization: Surpassing industry standards, the company's market capitalization asserts its dominance in terms of size, suggesting a robust market position.

Negative Revenue Trend: Examining Elevance Health's financials over 3 months reveals challenges. As of 30 June, 2024, the company experienced a decline of approximately -0.06% in revenue growth, reflecting a decrease in top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Health Care sector.

Net Margin: Elevance Health's net margin excels beyond industry benchmarks, reaching 5.27%. This signifies efficient cost management and strong financial health.

Return on Equity (ROE): Elevance Health's ROE excels beyond industry benchmarks, reaching 5.56%. This signifies robust financial management and efficient use of shareholder equity capital.

Return on Assets (ROA): Elevance Health's ROA surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 2.05% ROA, the company effectively utilizes its assets for optimal returns.

Debt Management: With a high debt-to-equity ratio of 0.66, Elevance Health faces challenges in effectively managing its debt levels, indicating potential financial strain.

To track all earnings releases for Elevance Health visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.