Elevance Health reported better-than-expected results for the first quarter, with earnings and revenue coming in above analysts’ estimates. The company also lowered its costs and raised its outlook for the full year.
Elevance Health (ELV) exceeded earnings and revenue estimates in the first quarter, with shares trading at their highest level since late 2022 on Thursday afternoon. The health insurer’s benefit expense ratio improved by 20 basis points, while total operating margin rose to 7.1% from 6.8% last year. Revenue from premiums slipped by 0.5%, while benefit expenses were down by 0.8%.
The gain was “driven primarily by premium rate adjustments to cover medical cost trend in our Health Benefits business,” said CEO Gail Boudreaux. The company now anticipates full-year EPS of greater than $37.20, up from its previous outlook of greater than $37.10. Elevance shares closed at $528.26 at about 3:45 p.m., up nearly 4% in late trading Thursday.
