Elevance HealthNYSE: ELV

Elevance Health (NYSE: ELV) has just announced its Q3 results, showing that its revenue was higher than expected, but its earnings fell short of predictions. The company generated $44.7 billion in revenue and adjusted earnings of $8.37 per share, while analysts had estimated $43.5 billion in revenue and $9.66 in earnings.

On Thursday, Elevance Health Inc. (ELV) announced that its earnings for the third quarter were lower than anticipated.

Elevance Health's results for the third quarter of 2024 were not as good as expected, with a notable rise in the benefit expense ratio and reduced earnings forecasts for the year. I examine how much ELV relies on government plans and how profitable they are. Despite this, I believe Elevance stock is reasonably priced, even with cautious growth predictions for the near and long term.

The main U.S. stock indexes showed varied results as earnings from Taiwan Semiconductor Manufacturing (TSM) boosted hope for artificial intelligence (AI), and September retail sales figures exceeded expectations.

Elevance Health's earnings report for the third quarter resulted in a 14% decrease in its stock price because of a higher benefit expense ratio and lower earnings per share. The health insurance sector is struggling, especially with Medicare Advantage and Medicaid, which is impacting profits and leading to falling share prices across the industry. While Elevance's management anticipates revenue growth in 2025, they recognize that profitability challenges remain, indicating a careful outlook for the near future.

ELV's earnings for the third quarter have been negatively affected by a drop in Medicaid and Medicare membership, although this was somewhat balanced by an increase in product sales.

On Thursday, Elevance Health Inc. (ELV) announced its third-quarter revenues reached $44.7 billion, which is a 5.3% increase compared to the same period last year. This figure surpassed the expected revenue of $43.33 billion.

Elevance Health (ELV) reported quarterly earnings of $8.37 per share, which is lower than the Zacks Consensus Estimate of $9.70 per share. This is a decrease compared to earnings of $8.99 per share from the same period last year.

Chief Executive Gail K. Boudreaux stated in her prepared comments that they are still optimistic about the long-term profit potential of their various businesses, even as they face a changing market and unique difficulties in the Medicaid sector.