Elevance confirms quarterly profit beat, reaffirms 2025 forecast
Bengaluru: Health insurer
Elevance Health
said on Tuesday its
first-quarter profit
came above Street expectations, matching the preliminary estimates it released last week after bellwether UnitedHealth's lowered full-year forecast triggered a selloff in the sector.
Elevance also reiterated its full-year profit forecast of $34.15 to $34.85 per share, and reported first-quarter adjusted shareholders' net income of $11.97 per share.
The company came out with preliminary earnings numbers on Thursday, amid a sharp decline in health insurers after UnitedHealth missed quarterly profit estimates due to elevated patient care costs in its
Medicare Advantage
business.
The company's
operating revenue
rose 15.4% to $48.77 billion during the quarter.
Last week, Elevance said that costs in its Medicare Advantage business, which provides government-backed plans to adults aged 65 and older and those with disabilities, were in line with its expectations and the prices of its plans.
Wall Street analysts have said that UnitedHealth's cut likely reflects the healthcare conglomerate's own challenges, and not an industry-wide problem.
Elevance is less exposed to government-backed Medicare Advantage plans, and banks more on commercial and Medicaid health plans.
For the quarter, the company's
medical loss ratio
, a closely watched ratio to track costs, was 86.4%, below analysts' average estimate of 86.8%. Companies aim for a ratio close to around 80%.
Investors will be closely watching Elevance's post-earnings conference call, scheduled at 8:30 am ET, to get more details on the earnings and the forecast.
Sneha S K
and Manas Mishra in Bengaluru; Editing by Shinjini Ganguli)
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