Elevance Health Q3 Earnings Beat Street Estimates, Lifts FY22 Profit Guidance

Elevance Health Inc ELV reported Q3 FY22 adjusted EPS of $7.53, up 10.9% Y/Y, beating the consensus of $7.16.
Operating revenue are up 11.5% to $39.6 billion, beating the expectations of $39.09 billion, driven by higher premium revenue due to membership growth in Medicaid, MMM & Paramount Advantage acquisitions, and premium rate increases to cover overall cost trends.
The increase was further attributable to the growth in pharmacy product revenue within IngenioRx related to growth in membership and higher utilization of prescription drugs.
The benefit expense ratio was 87.2%, down 50 basis points Y/Y.
Operating cash flow was $4.9 billion, or 3.1x net income, increasing $2.4 billion year-over-year.
Medical membership totaled 47.3 million as of September 30, 2022, an increase of 4.9% year-over-year.
As of September 30, 2022, ELV had approximately $2.4 billion of share repurchase authorization remaining.
On October 18, 2022, the Board declared a fourth-quarter 2022 dividend of $1.28 per share, payable on December 21, 2022, to shareholders of record on December 5, 2022.
FY22 Outlook: The company expects FY22 adjusted EPS of more than $28.95 (consensus of $28.85) versus prior guidance of $28.70.
Price Action: ELV shares are up 1.83% at $487.00 during the premarket session on the last check Wednesday.

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