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Anthem (ANTM) Rises 3.7% Since Q4 Earnings, Reiterates View
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Anthem, Inc.’s shares have increased 3.7% since it reported fourth-quarter 2021 earnings, despite providing a lower-than-expected guidance for 2022. In a recent filing, the company reiterated its adjusted net income guidance for 2022 at more than $28.25 per share, ahead of the talks scheduled with investors over the next several weeks.
In comparison, the Zacks Consensus Estimate for 2022 bottom line is currently pegged at $28.43 per share. Nevertheless, the guided figure indicates a significant jump from the 2021 level of $25.98 per share. Its fourth-quarter earnings of $5.14 per share beat the Zacks Consensus Estimate of $5.11. It beat earnings estimates in each of the past four quarters, with an average of 5.2%.
Profits have been witnessing continuous growth over the past many years on the back of premium rate increase and higher membership. As COVID costs are declining, the managed care space is expected to grow in the coming days.
The company’s Medicaid footprint is expected to grow on the back of the pending acquisition of Paramount Advantage's Ohio contracts, as service is expected to commence in July. With public health emergency likely to end mid-April, it expects Medicaid eligibility redeterminations to resume around mid-2022. The process is expected to be a gradual one. For this year, the company expects Medicare Advantage membership to grow in mid-teens percentage from the 2021 level. Overall medical enrolment is likely to be in the range of 45.6-46.2 million.
In 2022, the top line is expected to rise to $152 billion (including $130 billion of premium revenues) from $136.9 billion in 2021. Its strong business growth, membership hike and significant new contracts in the Government business will likely keep supporting the top line. ANTM’s contract awarded to serve the retirees of New York in partnership with Emblem Health is going to be a major player in membership number rejig in April. Also, the ongoing economic recovery and low unemployment level will boost the commercial business, as employers are expected to buy more products for their workers. These factors are expected to have played a significant role in the company’s share price appreciation.
Neuronetics develops products to help people suffering from neuro health conditions. Based in Malvern, PA, Neuronetics’ bottom line for 2022 is expected to rise 3.6% year over year. In the last four quarters, STIM beat earnings estimates twice and missed on other occasions.
Galecto creates molecules utilized for treating inflammation, fibrosis, cancer and other drugs. The Zacks Consensus Estimate for GLTO’s 2022 bottom line has improved 3.2% in the past 30 days. Galecto beat earnings estimates thrice in the last four quarters and missed once, with an average surprise of 2.5%.
Axcella Health utilizes endogenous metabolic modulator compositions to treat complex diseases. The consensus mark for AXLA’s 2022 earnings indicates a 3.4% year-over-year rise. Headquartered in Cambridge, MA, Axcella Health beat earnings estimates twice in the last four quarters, met once and missed on another occasion, with an average surprise of 0.6%.
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Anthem (ANTM) Rises 3.7% Since Q4 Earnings, Reiterates View
Anthem, Inc.’s shares have increased 3.7% since it reported fourth-quarter 2021 earnings, despite providing a lower-than-expected guidance for 2022. In a recent filing, the company reiterated its adjusted net income guidance for 2022 at more than $28.25 per share, ahead of the talks scheduled with investors over the next several weeks.
In comparison, the Zacks Consensus Estimate for 2022 bottom line is currently pegged at $28.43 per share. Nevertheless, the guided figure indicates a significant jump from the 2021 level of $25.98 per share. Its fourth-quarter earnings of $5.14 per share beat the Zacks Consensus Estimate of $5.11. It beat earnings estimates in each of the past four quarters, with an average of 5.2%.
Anthem, Inc. Price and EPS Surprise
Anthem, Inc. price-eps-surprise | Anthem, Inc. Quote
Profits have been witnessing continuous growth over the past many years on the back of premium rate increase and higher membership. As COVID costs are declining, the managed care space is expected to grow in the coming days.
The company’s Medicaid footprint is expected to grow on the back of the pending acquisition of Paramount Advantage's Ohio contracts, as service is expected to commence in July. With public health emergency likely to end mid-April, it expects Medicaid eligibility redeterminations to resume around mid-2022. The process is expected to be a gradual one. For this year, the company expects Medicare Advantage membership to grow in mid-teens percentage from the 2021 level. Overall medical enrolment is likely to be in the range of 45.6-46.2 million.
In 2022, the top line is expected to rise to $152 billion (including $130 billion of premium revenues) from $136.9 billion in 2021. Its strong business growth, membership hike and significant new contracts in the Government business will likely keep supporting the top line. ANTM’s contract awarded to serve the retirees of New York in partnership with Emblem Health is going to be a major player in membership number rejig in April. Also, the ongoing economic recovery and low unemployment level will boost the commercial business, as employers are expected to buy more products for their workers. These factors are expected to have played a significant role in the company’s share price appreciation.
Zacks Rank & Key Picks
Anthem currently has a Zacks Rank #3 (Hold). Some better-ranked stocks in the Medical space include Neuronetics, Inc. (STIM - Free Report) , Galecto, Inc. (GLTO - Free Report) and Axcella Health Inc. , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Neuronetics develops products to help people suffering from neuro health conditions. Based in Malvern, PA, Neuronetics’ bottom line for 2022 is expected to rise 3.6% year over year. In the last four quarters, STIM beat earnings estimates twice and missed on other occasions.
Galecto creates molecules utilized for treating inflammation, fibrosis, cancer and other drugs. The Zacks Consensus Estimate for GLTO’s 2022 bottom line has improved 3.2% in the past 30 days. Galecto beat earnings estimates thrice in the last four quarters and missed once, with an average surprise of 2.5%.
Axcella Health utilizes endogenous metabolic modulator compositions to treat complex diseases. The consensus mark for AXLA’s 2022 earnings indicates a 3.4% year-over-year rise. Headquartered in Cambridge, MA, Axcella Health beat earnings estimates twice in the last four quarters, met once and missed on another occasion, with an average surprise of 0.6%.