Anthem's (ANTM) Q2 Earnings Beat Estimates, Increase Y/Y
Zacks Investment Research | Jul 23, 2019 10:58PM ET
Anthem Inc. (NYSE:ANTM) delivered second-quarter 2019 earnings of $4.64 per share, marginally beating the Zacks Consensus Estimate by 0.7%. Additionally, the bottom line improved 9.2% year over year on the back of higher revenues.
Further, Anthem reported operating revenues of $25.2 billion, beating the Zacks Consensus Estimate by 2.1%. Moreover, the top line was up 10.8% year over year, aided by membership growth across businesses and the premium rate increases to cover the overall cost trends. However, this upside was partially offset by the year-long waiver of the health insurance tax in 2019.
Quarterly Operational Update
Medical enrollment inched up 3.3% year over year to 40.9 million members, backed by growth in Medicaid and Medicare, partly offset by the declines in Commercial & Specialty Business enrollment.
Anthem’s benefit expense ratio of 86.7% expanded 330 basis points (bps) from the prior-year quarter. The increase was attributable to one-year waiver of the health insurance tax in 2019 and the medical cost in the Medicaid business.
SG&A expense ratio of 13% contracted 210 bps from the year-ago quarter towing to the year-long waiver of the health insurance tax in 2019 plus growth in the operating revenues.
Anthem, Inc. Price, Consensus and EPS Surprise
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