Anthem (ANTM) Reports In-Line Q1 EPS, Revenues Beat; Offers FY20 EPS Guidance Above Consensus

Anthem (NYSE: ANTM) reported Q1 EPS of $6.48, in-line with the analyst estimate of $6.48. Revenue for the quarter came in at $29.4 billion versus the consensus estimate of $28.6 billion.

CONSOLIDATED HIGHLIGHTS

• Earnings Per Share: GAAP net income was $5.94 per share in the quarter, including net negative adjustment items of $0.54 per share. Adjusted net income was $6.48* per share.
• Membership: Medical enrollment totaled 42.1 million members at March 31, 2020, an increase of 1.3 million, or 3.2 percent, from March 31, 2019. Risk enrollment grew by 676 thousand lives, or 4.4 percent, and fee-based enrollment grew by 625 thousand lives, or 2.5 percent. Government Business enrollment increased by 849 thousand lives over the prior year quarter, driven by Medicaid, reflecting the acquisition of Medicaid members in Missouri and Nebraska and organic growth in our markets, and Medicare Advantage. Commercial & Specialty Business enrollment grew by 452 thousand lives driven by growth in the fee-based businesses, including the acquisition of AmeriBen, a third-party administrator (TPA).
• During the first quarter of 2020, medical enrollment increased sequentially by 1.1 million lives, or 2.8 percent, reflecting growth in the National and Medicaid businesses, in part due to the aforementioned acquisitions.
• Operating Revenue: Operating revenue was $29.4 billion in the first quarter of 2020, an increase of $5.1 billion, or 20.7 percent, versus the prior year quarter, driven by pharmacy product revenue related to the launch of IngenioRx. The increase was further attributable to higher premium revenue from rate increases to cover overall cost trends, including the return of the health insurance tax in 2020, and membership growth.

“Anthem recognizes the important role we play as part of the national response to the COVID-19 pandemic,” said President and CEO Gail K. Boudreaux. “Guided by our mission and values, Anthem is engaging across the country and in our local communities to support our members, customers and partners with relief and care during this challenging time. We are grateful to all those fighting on the front lines of this healthcare crisis, and will continue to stand with them as we work through this pandemic together.”

GUIDANCE:

Anthem sees FY2020 EPS of $22.30-$22.02.

• GAAP net income is expected to be greater than $21.00 per share, including approximately $1.30 per share of net unfavorable items. Excluding these items, adjusted net income is expected to be greater than $22.30* per share.

Due to unprecedented uncertainty around the COVID-19 pandemic and its impact, the Company is withdrawing all other previously issued financial guidance metrics for 2020 until visibility improves.

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

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