Anthem (ANTM) Tops Q1 EPS by 50c, Revenues Miss; Raises FY21 EPS Outlook

Anthem (NYSE: ANTM) reported Q1 EPS of $7.01, $0.50 better than the analyst estimate of $6.51. Revenue for the quarter came in at $32.1 billion versus the consensus estimate of $32.94 billion.

• First quarter GAAP net income was $6.71 per share, including net negative adjustment items of $0.30 per share. Adjusted net income was $7.01* per share.
• Operating revenue grew by 9.0%, or 10.7% adjusted for the repeal of the health insurance tax, over the prior year quarter to $32.1 billion.
• Medical enrollment increased by 1.4 million members year over year and 596 thousand members sequentially to 43.5 million members.
• Second quarter 2021 dividend of $1.13 per share declared to shareholders.
• Raising full year adjusted net income outlook from greater than $24.50* per share to greater than $25.10* per share.

"Our results in the first quarter reflect strong execution and a continued focus on supporting our communities through the pandemic," said Gail K. Boudreaux, President and CEO. "We expect the positive momentum in the first quarter to persist through the balance of the year, driven by our commitment to delivering affordable healthcare and innovative solutions for those we serve. At Anthem, we are modernizing our business while transforming into a digitally-enabled platform for health. Our solid performance demonstrates the value we bring to the market and I am confident that we are well positioned to capitalize on future opportunities for growth."

GUIDANCE:

Anthem sees FY2021 EPS of $25.10, versus the consensus of $24.82. Anthem sees FY2021 revenue of $135.1 billion, versus the consensus of $135.03 billion.

• GAAP net income is now expected to be greater than $24.05 per share, including approximately $1.05 per share of net unfavorable items. Excluding these items, adjusted net income is expected to be greater than $25.10* per share.
• Medical membership is expected to be in the range of 44.1 - 44.7 million. Risk-based membership is expected to be in the range of 18.6 - 19.0 million. Fee-based membership is expected to be in the range of 25.5 - 25.7 million.
• Operating revenue is expected to be approximately $135.1 billion, including premium revenue of $114.5 billion - $115.5 billion.
• Benefit expense ratio is expected to be in the range of 88.0% plus or minus 50 basis points.
• SG&A ratio is expected to be 10.8% plus or minus 50 basis points.
• Operating cash flow is expected to be greater than $5.7 billion.
• Investment income is now expected to be $970 million.
• Interest expense is now expected to be $820 million.

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

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