Anthem, Inc. is one of the premier healthcare service providers when it comes to providing medical and specialty products.
Already sporting one of the top position in the health insurance industry, the company is set to become a titan with the pending acquisition of another player Cigna Corp. Anthem is projected to become one of the top three health insurers. Also, the company is expected to witness significant earnings accretion from the deal.
The company has been working towards enhancing healthcare through the provision of reliable and superior quality services. The aforementioned deal is expected to help it in this regard.
However, adverse effect of the Health Insurance Provider (HIP) fee, increased financial leverage, higher medical costs in the Senior, Local Group and State-Sponsored businesses, lower favorable prior year reserve development and the impact of minimum medical loss ratio requirements are a drag.
Anthem has a decent history when it comes to earnings as the company has beaten estimates in three of the last four quarters, making for an average beat of 5.45%.
Currently, Anthem holds a Zacks Rank #3 (Hold), but that could definitely change following its earnings report which was just released. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
We have highlighted some of the key stats from this just-revealed announcement below:
Earnings: Anthem beats on earnings. Our consensus called for EPS of $1.59, and the company reported EPS of $1.76.
Revenue: Operating revenues also surpassed our estimate. Our consensus called for revenues of $20.9 billion, and the company reported revenues of $21.5 billion.
Key Stats to Note: Medical enrollment at the end of 2016 continues to impress us with a year over year increase of about 3.4%.
However, fourth quarter benefit expense ratio deteriorated 20 basis points year over year to 87.2%. The selling, general and administrative expense ratio was 15.2%, improving 110 basis points year over year.
Operating cash flow for the fourth quarter was $275 million, or 0.7 times net income.
For 2017, the company expects adjusted net income to be greater than $11.50 per share, medical membership is expected to be in the range of 40.1 million – 40.3 million; operating revenue to be roughly between $86.5 - $87.5 billion.
Check back later for our full write up on this ANTM earnings report later!
Zacks' Top 10 Stocks for 2017
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2017?
Who wouldn't? As of early December, the 2016 Top 10 produced 5 double-digit winners including oil and natural gas giant Pioneer Natural Resources which racked up a stellar +50% gain. The new list is painstakingly hand-picked from 4,400 companies covered by the Zacks Rank. Be among the very first to see it>>
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Anthem (ANTM) Q4 Earnings and Revenues Beat Estimates
Anthem, Inc. is one of the premier healthcare service providers when it comes to providing medical and specialty products.
Already sporting one of the top position in the health insurance industry, the company is set to become a titan with the pending acquisition of another player Cigna Corp. Anthem is projected to become one of the top three health insurers. Also, the company is expected to witness significant earnings accretion from the deal.
The company has been working towards enhancing healthcare through the provision of reliable and superior quality services. The aforementioned deal is expected to help it in this regard.
However, adverse effect of the Health Insurance Provider (HIP) fee, increased financial leverage, higher medical costs in the Senior, Local Group and State-Sponsored businesses, lower favorable prior year reserve development and the impact of minimum medical loss ratio requirements are a drag.
Anthem has a decent history when it comes to earnings as the company has beaten estimates in three of the last four quarters, making for an average beat of 5.45%.
Currently, Anthem holds a Zacks Rank #3 (Hold), but that could definitely change following its earnings report which was just released. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
We have highlighted some of the key stats from this just-revealed announcement below:
Earnings: Anthem beats on earnings. Our consensus called for EPS of $1.59, and the company reported EPS of $1.76.
Anthem, Inc. Price and EPS Surprise
Anthem, Inc. Price and EPS Surprise | Anthem, Inc. Quote
Revenue: Operating revenues also surpassed our estimate. Our consensus called for revenues of $20.9 billion, and the company reported revenues of $21.5 billion.
Key Stats to Note: Medical enrollment at the end of 2016 continues to impress us with a year over year increase of about 3.4%.
However, fourth quarter benefit expense ratio deteriorated 20 basis points year over year to 87.2%. The selling, general and administrative expense ratio was 15.2%, improving 110 basis points year over year.
Operating cash flow for the fourth quarter was $275 million, or 0.7 times net income.
For 2017, the company expects adjusted net income to be greater than $11.50 per share, medical membership is expected to be in the range of 40.1 million – 40.3 million; operating revenue to be roughly between $86.5 - $87.5 billion.
Check back later for our full write up on this ANTM earnings report later!
Zacks' Top 10 Stocks for 2017
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2017?
Who wouldn't? As of early December, the 2016 Top 10 produced 5 double-digit winners including oil and natural gas giant Pioneer Natural Resources which racked up a stellar +50% gain. The new list is painstakingly hand-picked from 4,400 companies covered by the Zacks Rank. Be among the very first to see it>>