Anthem's (ANTM) Q4 Earnings Miss Estimates, Rise Y/Y
Zacks Investment Research | Jan 28, 2020 11:21PM ET
Anthem Inc.’s (NYSE:ANTM) fourth-quarter earnings of $3.88 per share missed the Zacks Consensus Estimate of $3.90 by 0.5% due to high expenses. However, the bottom line surged 59% year over year, driven by solid revenues and the successful launch of IngenioRx.
Anthem posted operating revenues of $27.1 billion, surpassing the Zacks Consensus Estimate by 1%. The top line was also up 16.4% year over year, boosted by higher premium revenues derived from membership growth across all businesses as well as rate surges to cover overall cost trends. The results were supported by growth in value-added services including pharmacy and integrated health offerings, partially offset by the one-year waiver of the health insurance tax in 2019.
Quarterly Operational Update
Anthem’s benefit expense ratio of 89% improved 220 basis points (bps) from the prior-year quarter, aided by the one-year waiver of the health insurance tax in 2019.
SG&A expense ratio of 12.9% contracted 260 bps from the year-ago quarter on the back of growth in operating revenues and a year-long waiver of the health insurance tax in 2019.
Total expenses of the company increased 15.2% year over year to $26.3 billion.
Anthem, Inc. Price, Consensus and EPS Surprise
the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Upcoming Releases From Medical Sector
Some stocks worth considering from the medical sector with a perfect mix of elements to surpass estimates in the upcoming quarterly releases are as follows:
AmerisourceBergen Corporation (NYSE:ABC) is slated to announce fourth-quarter earnings on Jan 30. The stock has an Earnings ESP of +0.82% and is Zacks #3 Ranked.
Molina Healthcare, Inc (NYSE:MOH) has an Earnings ESP of +0.48% and a Zacks Rank of 3. The company is scheduled to release fourth-quarter earnings on Feb 10.
Teladoc Health, Inc. (NYSE:TDOC) is set to report fourth-quarter earnings on Feb 26. The stock is #3 Ranked and has an Earnings ESP of +11.17%.
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