Elevance Health Reports Strong Q4 Revenue Growth

Elevance Health reported a fourth-quarter revenue of $44.99 billion, surpassing analyst expectations and marking a 6% year-over-year increase, largely driven by higher premium yields and growth in CarelonRx product revenue. Despite a decrease in adjusted earnings per share from $5.62 to $3.84, the figure still beat consensus estimates. The company also announced a 4.9% increase in its quarterly dividend, indicating confidence in future performance. However, medical membership fell due to decreased Medicaid plan eligibility, impacting the benefit expense ratio, which rose to 92.4%. Looking ahead, Elevance projects earnings of $30.40 to $31.10 per share for 2025, with expected growth in premium and product revenue. Investors are concerned about rising healthcare costs, but Elevance’s strong financial performance has instilled optimism.