Anthem (NYSE: ANTM) reported Q1 EPS of $6.03, $0.17 better than the analyst estimate of $5.86. Revenue for the quarter came in at $24.4 billion versus the consensus estimate of $24.28 billion.

• First quarter net income was $5.91 per share, including net negative adjustment items of $0.12 per share. Adjusted net income was $6.03* per share.
• Operating revenue grew by 9.2% over the prior year quarter to $24.4 billion.
• Medical enrollment increased by 905 thousand members sequentially to 40.8 million members.
• Operating gain was $1.9 billion, an increase of 3.9% over the prior year quarter.
• Second quarter 2019 dividend of $0.80 per share declared to shareholders.

"Our first quarter 2019 results represent a strong start to the year. We reported significant growth in our risk-based membership and improved the penetration of our clinical and specialty services, demonstrating that our value proposition is resonating across our markets," said Gail K. Boudreaux, President and CEO. "Looking ahead, the upcoming launch of IngenioRx is a key milestone in the realization of our vision and strategy. With IngenioRx, we finally have a strong integrated pharmacy and medical platform, one that is predicated on providing the lowest absolute cost of care, and we are well positioned for accelerated growth."

GUIDANCE:

Anthem sees FY2019 EPS of $19.20, versus the consensus of $19.16. Anthem sees FY2019 revenue of $100 billion, versus the consensus of $100.5 billion.

• GAAP net income is now expected to be greater than $18.27 per share, including approximately $0.93 per share of net unfavorable items. Excluding these items, adjusted net income is now expected to be greater than $19.20* per share.
• Medical membership is expected to be in the range of 40,900,000 - 41,300,000. Fully-insured membership is expected to be in the range of 15,500,000 - 15,700,000 and self-funded membership is expected to be in the range of 25,400,000 - 25,600,000.
• Operating revenue is expected to be approximately $100.0 billion, including premium revenue of $90.5 billion - $92.5 billion.
• Benefit expense ratio is expected to be in the range of 86.2% plus or minus 30 basis points.
• Cost of products sold is expected to be $1.6 billion - $1.8 billion.
• SG&A ratio is expected to be in the range of 13.5% plus or minus 30 basis points.
• Operating cash flow is expected to be greater than $5.2 billion.

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