Elevance Health will beat its earnings guidance for the first quarter despite high Medicare Advantage costs, the company announced Thursday.
The health insurer reported that while Medicare Advantage spending was elevated during the period, it fell within the range the company anticipated. Elevance Health affirmed its guidance in a filing to the Securities and Exchange Commission after leading Medicare Advantage carrier UnitedHealth Group disclosed it underperformed in the first quarter, triggering a sell-off of health insurance stocks.
Related: UnitedHealth plunges after earnings miss, slashes 2025 forecast
Elevance Health, which is scheduled to reveal its financial results on Tuesday, reported that diluted earnings per share were $9.61 and adjusted earnings per share were $11.97, surpassing Wall Street expectations. The company maintained its prediction that adjusted net income would be as high as $34.85 per share for the year.
Elevance Health also reasserted its projection that Medicare Advantage membership will reach 2.3 million in 2025. The insurer gained 35,000 more members than foreseen during the annual enrollment period. Elevance Health assumed that membership would decline after it cut broker commissions and lost a Special Needs Plan contract.
The company reported $6 billion net income for 2024, essentially flat from the year before, as revenue grew 3.3% to $177 billion. Elevance Health ended the year with 45.7 million members, down 2.3%.
Health insurance stocks tumbled after UnitedHealth Group reported unfavorable results. Elevance Health shares opened at $390 on the New York Stock Exchange on Thursday, down 10.4% from the market close on Wednesday. The stock rebounded after the company submitted the SEC filing.
Elevance Health did not immediately respond to an interview request.
