Elevance hits $2.3B in profit but trims long-term guidance

Healthcare DIVE July 17, 2024
Rebecca Pifer

Elevance beat Wall Street expectations in second-quarter results posted Wednesday, despite steep Medicaid membership losses that are affecting revenue forecasts.

Dive Brief:

• Elevance reported solid second-quarter results on Wednesday — including $2.3 billion in profit — but the company still lowered long-term revenue growth guidance for its health insurance business. That disconnect raised red flags for analysts.
• Changing revenue growth forecasts for health benefits in the middle of the year “is unusual,” commented Jefferies analyst David Windley in a Wednesday note. “We can’t identify a single, large item that would compel [the reduction] off-cycle.”
• During a call with investors Wednesday, Elevance management cited several factors for dropping the guidance, including significant member losses from Medicaid redeterminations and Medicare Advantage...

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