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Elevance Health (ELV) to Post Q4 Earnings: What to Expect
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Elevance Health Inc. (ELV - Free Report) is set to report its fourth-quarter 2022 results on Jan 25, before the opening bell.
In the last reported quarter, the health benefits company’s adjusted earnings per share of $7.53 beat the Zacks Consensus Estimate of $7.10 by 6.1%, primarily due to membership growth, increased premiums and Medicaid business performance. Excellent performance in the Commercial & Specialty Business and IngenioRx supported its results. However, the positives were partially offset by higher expenses.
The Zacks Consensus Estimate for fourth-quarter earnings per share of $5.21 suggests a 1.4% increase from the prior-year figure of $5.14 while our estimate suggests 0.8% year-over-year growth. The consensus mark remained stable over the past week. The consensus estimate for fourth-quarter revenues of $39.9 billion indicates a 10.8% increase from the year-ago reported figure while our estimate suggests 5.3% year-over-year growth.
Elevance Health beat the consensus estimate for earnings in all the prior four quarters, with the average being 4.1%. This is depicted in the graph below:
Elevance Health’s fourth-quarter revenues are likely to have benefited from higher premiums and solid contributions by its Commercial & Specialty Business and Government Business units. The rising memberships attributable to ELV’s Medicare business are expected to have provided an impetus to the fourth quarter’s performance.
The increased memberships, when combined with ELV’s buyout of Integra Managed Care, are expected to have benefited the health insurer’s Government Business. The Zacks Consensus Estimate for Government Business’ operating revenues for the fourth quarter indicates an 11.8% year-over-year increase. Our estimate suggests that the segment revenues will see a 4.1% year-over-year increase.
Meanwhile, its Commercial & Specialty Business is likely to have been driven by robust growth in risk-based areas. The Zacks Consensus Estimate for the segment’s operating revenues for the fourth quarter indicates a 6.7% year-over-year increase while our estimate suggests 8.6% growth from a year ago. While the consensus estimate predicts 254.1% growth in operating income in the fourth quarter, our estimate suggests a 168.1% increase. This is likely to have positioned the company’s bottom line for a year-over-year increase in the to-be-reported quarter.
While the Zacks Consensus Estimate for total premiums indicates 10% growth from the year-ago period, our estimate suggests a 5.7% increase in the fourth quarter. Gross profits are likely to have increased 4.4% in the December quarter.
However, the consensus mark for net investment income indicates a 1.7% year-over-year decrease in the quarter under review. Its expenses are likely to have remained elevated in the quarter due to substantial investments in digital capabilities and platforms. We expect total expenses to have jumped 4.7% year over year in the fourth quarter, slightly reducing profit margins, making an earnings beat uncertain.
Earnings Whispers
Our proven model does not conclusively predict an earnings beat for Elevance Health this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. That is not the case here, as you will see below.
Earnings ESP: The company’s Earnings ESP is 0.00%. This is because both the Most Accurate Estimate and the Zacks Consensus Estimate currently stand at $5.21 per share.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Elevance Health currently carries a Zacks Rank #4 (Sell).
Stocks to Consider
While an earnings beat looks uncertain for Elevance Health, here are some companies from the broader medical space that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this time around:
Ardelyx, Inc. (ARDX - Free Report) has an Earnings ESP of +140.00% and is a Zacks #2 Ranked player.
The Zacks Consensus Estimate for Ardelyx’s earnings per share for the to-be-reported quarter indicates a 103.2% year-over-year improvement. ARDX witnessed one upward estimate revision in the past 30 days against none in the opposite direction.
Haemonetics Corporation (HAE - Free Report) has an Earnings ESP of +2.53% and a Zacks Rank #2.
The Zacks Consensus Estimate for Haemonetics’s bottom line for the to-be-reported quarter is pegged at 79 cents per share. It has witnessed one upward estimate revision in the past 30 days against none in the opposite direction. HAE beat earnings estimates in each of the past four quarters, the average surprise being 12.1%.
ImmunoGen, Inc. has an Earnings ESP of +11.36% and is a Zacks #3 Ranked player.
The Zacks Consensus Estimate for ImmunoGen’s bottom line for the to-be-reported quarter remained stable over the past week. IMGN beat earnings estimates in two of the past four quarters and missed on two other occasions, the average surprise being 7.4%.
Image: Bigstock
Elevance Health (ELV) to Post Q4 Earnings: What to Expect
Elevance Health Inc. (ELV - Free Report) is set to report its fourth-quarter 2022 results on Jan 25, before the opening bell.
In the last reported quarter, the health benefits company’s adjusted earnings per share of $7.53 beat the Zacks Consensus Estimate of $7.10 by 6.1%, primarily due to membership growth, increased premiums and Medicaid business performance. Excellent performance in the Commercial & Specialty Business and IngenioRx supported its results. However, the positives were partially offset by higher expenses.
Let’s see how things have shaped up before the fourth-quarter earnings announcement.
What Do the Estimates Say?
The Zacks Consensus Estimate for fourth-quarter earnings per share of $5.21 suggests a 1.4% increase from the prior-year figure of $5.14 while our estimate suggests 0.8% year-over-year growth. The consensus mark remained stable over the past week. The consensus estimate for fourth-quarter revenues of $39.9 billion indicates a 10.8% increase from the year-ago reported figure while our estimate suggests 5.3% year-over-year growth.
Elevance Health beat the consensus estimate for earnings in all the prior four quarters, with the average being 4.1%. This is depicted in the graph below:
Elevance Health, Inc. Price and EPS Surprise
Elevance Health, Inc. price-eps-surprise | Elevance Health, Inc. Quote
Factors to Note
Elevance Health’s fourth-quarter revenues are likely to have benefited from higher premiums and solid contributions by its Commercial & Specialty Business and Government Business units. The rising memberships attributable to ELV’s Medicare business are expected to have provided an impetus to the fourth quarter’s performance.
The increased memberships, when combined with ELV’s buyout of Integra Managed Care, are expected to have benefited the health insurer’s Government Business. The Zacks Consensus Estimate for Government Business’ operating revenues for the fourth quarter indicates an 11.8% year-over-year increase. Our estimate suggests that the segment revenues will see a 4.1% year-over-year increase.
Meanwhile, its Commercial & Specialty Business is likely to have been driven by robust growth in risk-based areas. The Zacks Consensus Estimate for the segment’s operating revenues for the fourth quarter indicates a 6.7% year-over-year increase while our estimate suggests 8.6% growth from a year ago. While the consensus estimate predicts 254.1% growth in operating income in the fourth quarter, our estimate suggests a 168.1% increase. This is likely to have positioned the company’s bottom line for a year-over-year increase in the to-be-reported quarter.
While the Zacks Consensus Estimate for total premiums indicates 10% growth from the year-ago period, our estimate suggests a 5.7% increase in the fourth quarter. Gross profits are likely to have increased 4.4% in the December quarter.
However, the consensus mark for net investment income indicates a 1.7% year-over-year decrease in the quarter under review. Its expenses are likely to have remained elevated in the quarter due to substantial investments in digital capabilities and platforms. We expect total expenses to have jumped 4.7% year over year in the fourth quarter, slightly reducing profit margins, making an earnings beat uncertain.
Earnings Whispers
Our proven model does not conclusively predict an earnings beat for Elevance Health this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. That is not the case here, as you will see below.
Earnings ESP: The company’s Earnings ESP is 0.00%. This is because both the Most Accurate Estimate and the Zacks Consensus Estimate currently stand at $5.21 per share.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Elevance Health currently carries a Zacks Rank #4 (Sell).
Stocks to Consider
While an earnings beat looks uncertain for Elevance Health, here are some companies from the broader medical space that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this time around:
Ardelyx, Inc. (ARDX - Free Report) has an Earnings ESP of +140.00% and is a Zacks #2 Ranked player.
You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Ardelyx’s earnings per share for the to-be-reported quarter indicates a 103.2% year-over-year improvement. ARDX witnessed one upward estimate revision in the past 30 days against none in the opposite direction.
Haemonetics Corporation (HAE - Free Report) has an Earnings ESP of +2.53% and a Zacks Rank #2.
The Zacks Consensus Estimate for Haemonetics’s bottom line for the to-be-reported quarter is pegged at 79 cents per share. It has witnessed one upward estimate revision in the past 30 days against none in the opposite direction. HAE beat earnings estimates in each of the past four quarters, the average surprise being 12.1%.
ImmunoGen, Inc. has an Earnings ESP of +11.36% and is a Zacks #3 Ranked player.
The Zacks Consensus Estimate for ImmunoGen’s bottom line for the to-be-reported quarter remained stable over the past week. IMGN beat earnings estimates in two of the past four quarters and missed on two other occasions, the average surprise being 7.4%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.