Elevance Health Earnings Preview: What to Expect from the Health Insurance Provider

Elevance Health is set to report Q4 earnings on Thursday, with analysts expecting a 10.1% YoY revenue growth to $48.32 billion and adjusted earnings of $8.97 per share. The company beat revenue expectations by 5.3% last quarter, adding 99,000 customers to reach 45.83 million. Elevance Health's stock has declined 10.5% over the past month and has an average analyst price target of $486.39.

Elevance Health (ELV) is set to report its Q4 earnings on Thursday, with analysts expecting a 10.1% year-over-year (YoY) revenue growth to $48.32 billion. Adjusted earnings per share are projected to be $8.97. The company exceeded revenue expectations by 5.3% last quarter, adding 99,000 customers to reach a total of 45.83 million. Elevance Health's stock has declined by 10.5% over the past month, currently trading near its 52-week low. The average analyst price target for the stock is $486.39 [3].

Analysts have been closely tracking several key metrics for Elevance Health. The consensus estimate for 'Revenues- Premiums' stands at $39.62 billion, suggesting a change of +11.9% year over year. 'Revenues- Service fees' are forecasted to be $2.24 billion, indicating a -1.8% change year over year. 'Revenues- Net investment income' is expected to be $464.67 million, with a -8.5% change from the year-ago quarter. 'Revenues- Product revenue' is projected to reach $6.14 billion, showing a +11.1% change year over year [1].

The 'Benefit Expense Ratio' is expected to reach 88.4%, compared to the present estimate of 86.3% in the same quarter last year. Analysts predict 'Medical Membership - Medicare - Medicare Supplement' to be 868.88 thousand, contrasting with the year-ago figure of 894.00 thousand. The 'Medical Membership - Commercial Risk-Based - Employer Group Risk-Based' is forecasted to reach 3.64 million, compared to the current estimate of 3.65 million in the same quarter of the previous year. The collective assessment points to an estimated 'Total Medical Membership' of 45.83 million, contrasting with the year-ago figure of 45.78 million [1].

Over the past month, shares of Elevance Health have returned -11.4% versus the Zacks S&P 500 composite's +4% change. Currently, ELV carries a Zacks Rank #3 (Hold), suggesting that its performance may align with the overall market in the near future [1]. Wells Fargo has recently lowered its price target on Elevance Health to $400 from $478, citing uncertainty regarding margins in key segments and maintaining an Overweight rating on the stock [3].

References:
[1] https://www.nasdaq.com/articles/elevance-health-elv-q2-earnings-preview-what-you-should-know-beyond-headline-estimates
[2] https://seekingalpha.com/news/4467405-unitedhealth-q4-earnings-beat-driven-stealth-sales
[3] https://www.investing.com/news/analyst-ratings/wells-fargo-lowers-elevance-stock-price-target-to-400-on-margin-concerns-93CH-4135177