Anthem's (ANTM) Q4 Earnings Beat Estimates, Improve Y/Y
Zacks Investment Research | Jan 29, 2019 10:16PM ET
Anthem Inc. (NYSE:ANTM) came up with fourth-quarter 2018 earnings of $2.44 per share, surpassing the Zacks Consensus Estimate by 10.9%. Additionally, the bottom line soared 89.1% year over year, driven by a solid operating performance across all core businesses.
Anthem reported operating revenues of $23.3 billion, almost in line with the Zacks Consensus Estimate. Meanwhile, the top line was up 4% year over year, aided by higher premium rates and the return of the health insurance tax in 2018 along with Medicare growth. However, this upside was partially offset by a weak footprint in the Individual ACA-compliant marketplace.
Quarterly Operational Update
Medical enrollment slipped almost 1% year over year to 39.9 million members. This downside was primarily caused by a reduced Individual ACA-compliant marketplace enrollment and a decline in Local Group enrollment.
Anthem’s benefit expense ratio of 86.8% improved 180 basis points (bps) from the prior-year quarter, boosted by the return of the health insurance tax in 2018 and an improved medical cost performance across its Commercial & Specialty Business.
SG&A expense ratio of 15.5% deteriorated 40 bps from the year-ago quarter due to the return of the health insurance tax in 2018. However, the same was partially mitigated by expense efficiency initiatives.
Anthem, Inc. Price, Consensus and EPS Surprise
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