Elevance Health Inc (NYSE:ELV) has reported Q2 FY23 adjusted EPS of $9.04, up 13.4% Y/Y, beating the consensus of $8.80.
Revenue increased 13% to $43.67 billion, beating the expectations of $41.50 billion, primarily driven by premium rate increases in the Health Benefits business and higher premium revenue due to membership growth in Medicaid and Medicare.
The increase in operating revenue was further attributable to growth in pharmacy product revenue within CarelonRx driven by growth in external pharmacy members served and the acquisition of BioPlus in Q1 2023.
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The benefit expense ratio was 86.4%, down 70 basis points Y/Y due to premium rate adjustments to more accurately reflect the cost of care.
Operating cash flow was $2 billion, or 1.1x net income.
Medical membership totaled 47.99 million, an increase of 2% year-over-year.
2023 Guidance: Elevance Health expects adjusted net income to be greater than $32.85 per share compared to prior guidance of over $32.70 per share and the consensus of $32.78.
Price Action: ELV shares are down 5.25% at $467.00 during the premarket session on the last check Wednesday.
