How did ELV's Q4 2024 earnings surprise investors?

Elevance Health (ELV) delivered mixed results in its Q4 2024 earnings report, leading to varied reactions from investors. 1. **Revenue Surpassed Expectations**: ELV's operating revenue for Q4 2024 was estimated at $44.9 billion, with a reported figure of $44.7 billion. This surpassed analyst estimates of $43.33 billion, indicating strong revenue growth, particularly driven by higher premium yields and growth in CarelonRx product revenue. 2. **EPS Fell Short of Expectations**: The company's GAAP EPS for the quarter was $4.36, which was below the expected $4.98. This discrepancy, coupled with a decline in adjusted diluted EPS from $8.99 in the previous year to $8.37, contributed to investor disappointment. 3. **Challenges and Adjustments**: ELV faced challenges due to ongoing issues in the Medicaid business and strategic efforts to enhance operational efficiencies. The company's full-year outlook for adjusted diluted EPS was reduced to approximately $33, reflecting these challenges and impacting investor confidence. 4. **Dividend and Share Repurchases**: ELV announced a Q4 2024 dividend of $1.63 per share, maintaining a consistent return to shareholders. Additionally, the company authorized an $8.0 billion increase to the common stock repurchase program, signaling confidence in long-term growth and shareholder value enhancement. In conclusion, while ELV's revenue surpassed expectations, the lower EPS and challenges in the Medicaid business fell short of investor expectations, leading to mixed reactions in the market. The company's strategic initiatives and commitment to shareholder returns, however, may mitigate some of the negative impacts.