A Look Ahead: Elevance Health's Earnings Forecast

Elevance Health ELV is set to give its latest quarterly earnings report on Tuesday, 2025-04-22. Here's what investors need to know before the announcement.

Analysts estimate that Elevance Health will report an earnings per share (EPS) of $10.28.

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 missed by $0.02, leading to a 0.1% drop in the share price on the subsequent day.

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

Market Performance of Elevance Health's Stock

Shares of Elevance Health were trading at $424.53 as of April 18. Over the last 52-week period, shares are down 21.65%. Given that these returns are generally negative, long-term shareholders are likely unhappy going into this earnings release.

Analyst Views on Elevance Health

For investors, grasping market sentiments and expectations in the industry is vital. This analysis explores the latest insights regarding Elevance Health.

A total of 8 analyst ratings have been received for Elevance Health, with the consensus rating being Outperform. The average one-year price target stands at $492.8, suggesting a potential 16.08% upside.

Analyzing Analyst Ratings Among Peers

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.

• Analysts currently favor an Neutral trajectory for Molina Healthcare, with an average 1-year price target of $363.56, suggesting a potential 14.36% downside.
• Analysts currently favor an Outperform trajectory for HealthEquity, with an average 1-year price target of $111.11, suggesting a potential 73.83% downside.
• Analysts currently favor an Buy trajectory for Alignment Healthcare, with an average 1-year price target of $18.19, suggesting a potential 95.72% downside.

Overview of Peer Analysis

In the peer analysis summary, key metrics for Molina Healthcare, HealthEquity and Alignment Healthcare are highlighted, providing an understanding of their respective standings within the industry and offering 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 US, providing medical benefits to 46 million medical members as of December 2024. 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. It is also an emerging player in pharmacy benefit management and other healthcare services.

Key Indicators: Elevance Health's Financial Health

Market Capitalization: Boasting an elevated market capitalization, the company surpasses industry averages. This signals substantial size and strong market recognition.

Revenue Growth: Elevance Health displayed positive results in 3 months. As of 31 December, 2024, the company achieved a solid revenue growth rate of approximately 6.55%. This indicates a notable increase in the company's 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 is below industry standards, pointing towards difficulties in achieving strong profitability. With a net margin of 0.92%, the company may encounter challenges in effective cost control.

Return on Equity (ROE): Elevance Health's ROE excels beyond industry benchmarks, reaching 0.98%. This signifies robust financial management and efficient use of shareholder equity capital.

Return on Assets (ROA): Elevance Health's ROA excels beyond industry benchmarks, reaching 0.36%. This signifies efficient management of assets and strong financial health.

Debt Management: Elevance Health's debt-to-equity ratio is below the industry average. With a ratio of 0.76, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

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.