Anthem (ANTM) Tops Q2 EPS by 9c, Revenues In-Line; Offers FY18 EPS/Revenue Outlook

Anthem (NYSE: ANTM) reported Q2 EPS of $4.25, $0.09 better than the analyst estimate of $4.16. Revenue for the quarter came in at $22.7 billion versus the consensus estimate of $22.7 billion.

"We are pleased with our second quarter 2018 financial performance, which demonstrates our ongoing commitment to delivering strong medical cost performance and innovative healthcare solutions to our members," said Gail K. Boudreaux, President and CEO. "We remain focused on improving fundamental execution across the enterprise and we expect the positive momentum exhibited in the first half of 2018 to persist for the balance of the year. We will also continue to invest in capabilities that will enable us to more effectively meet the needs of our customers and seamlessly adapt to the ever-changing healthcare landscape. I\'m excited about the growth opportunities we see ahead of us and I\'m confident that with our trusted brand and deep local market presence, we are well-positioned to gain share in our markets and deliver quality, affordable healthcare to our members."

OUTLOOK

Full Year 2018:

• Net income is now expected to be greater than $14.20 per share, including approximately $1.20 per share of net unfavorable items. Excluding these items, adjusted net income is now expected to be greater than $15.40 per share (refer to the GAAP reconciliation table).
• Medical membership is now expected to be in the range of 39,900,000 - 40,100,000. Fully-insured membership is now expected to be in the range of 14,600,000 - 14,700,000 and self-funded membership is expected to be in the range of 25,300,000 - 25,400,000.
• Operating revenue is expected to be in the range of $91.0 - $92.0 billion.
• Benefit expense ratio is expected to be in the range of 84.4% plus or minus 30 basis points.
• SG&A ratio is expected to be in the range of 15.4% plus or minus 30 basis points.
• Operating cash flow is expected to be greater than $4.0 billion.

GUIDANCE:

Anthem sees FY2018 EPS of $15.40, versus the consensus of $15.41. Anthem sees FY2018 revenue of $91-92 billion, versus the consensus of $91.33 billion.

For earnings history and earnings-related data on Anthem (ANTM) click here.

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