Elevance Health Shares Plunge After Earnings Report

Elevance Health Inc. shares plummeted over 13% after the company reported lower-than-expected earnings and cut its full-year profit outlook due to significant drops in Medicaid membership and rising medical costs. The insurer's third-quarter earnings per share fell to $4.36, missing analyst expectations, while revenue increased by 5.3% to $45.11 billion. A staggering 19% decrease in Medicaid enrollment was attributed to eligibility redeterminations, forcing Elevance to revise its adjusted earnings outlook from at least $37.20 to $33 per share. CEO Gail Boudreaux acknowledged 'unprecedented challenges' in the Medicaid sector, indicating a broader issue affecting health insurers reliant on government programs. The stock's decline triggered drops in shares of rival insurers such as Centene and Molina Healthcare, underscoring the troubled landscape of Medicaid providers. Despite the downturn, Elevance remains optimistic about its long-term earnings potential, citing efforts to enhance operational efficiencies.