Elevance Health (NYSE:ELV) reported better-than-expected results in the second quarter with adjusted diluted earnings of $10.12 per share, up by 12% year-over-year, which exceeded analysts’ consensus estimate of $10 per share.
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ELV’s Revenue Breakdown
Unfortunately, the health insurance provider’s operating revenues in the second quarter declined by $0.2 billion year-over-year to $43.2 billion. This exceeded analysts’ expectations of $42.99 billion.
The company’s two business segments include Health Benefits and Carelon. Elevance’s health benefits business includes individual, employer group risk-based and fee-based, BlueCard, Medicare, Medicaid, and Federal Health Products & Services businesses.
The health benefits business generated Q2 operating revenue of $37.2 billion, a decline of 2% year-over-year due to Medicaid membership attrition. Medicaid is a free or low-cost public health insurance program in the U.S. for eligible low-income adults and children.
Carelon offers a broad portfolio of healthcare services that generated operating revenues of $13.3 billion in the second quarter, up by 10% year-over-year.
ELV’s Dividend and FY24 Outlook
Looking forward, management reiterated its FY24 outlook and expects adjusted earnings to be at least $37.20 per share, slightly below consensus estimates of $37.28 per share.
In addition, the company declared a third-quarter dividend of $1.63 per share payable on September 25, 2024, to shareholders of record at the close of business on September 10.
Is ELV Stock a Buy?
Analysts remain bullish about ELV stock, with a Strong Buy consensus rating based on a unanimous 16 Buys. Over the past year, ELV has increased by more than 25%, and the average ELV price target of $615.50 implies an upside potential of 11.3% from current levels. However, these analyst ratings are likely to change following Elevance’s Q2 results today.
