New Enrollments Push Anthem Beyond Expectations in Q1
Anthem delivered a better-than-expected first quarter and pushed its 2021 forecast past expectations, as growing enrollment and a pharmacy benefits business helped the health insurer.
From the Equity Insider archive. This article dates from Apr 22, 2021 and is preserved as first published.
Anthem delivered a better-than-expected first quarter and pushed its 2021 forecast past expectations, as growing enrollment and a pharmacy benefits business helped the health insurer.
INDIANAPOLIS — Anthem delivered a better-than-expected first quarter and pushed its 2021 forecast past expectations, as growing enrollment and a pharmacy benefits business lifted the health insurer.
The Blue Cross-Blue Shield insurer said Wednesday that it now expects full-year earnings to come in at greater than $25.10 per share after starting 2021 with a forecast that fell well short of Wall Street projections.
Analysts now expect, on average, earnings of $24.70 per share, according to FactSet.
The Indianapolis company covers more than 43 million people in several states, including big markets like New York and California. It also runs a pharmacy benefits management business called IngenioRx.
The Indianapolis company covers more than 43 million people in several states, including big markets like New York and California.
Enrollment in state and federally funded Medicaid plans that Anthem manages jumped 20% to about 9.2 million people compared with the same three months last year. That helped counter a drop in its more profitable commercial coverage, which includes employer-sponsored insurance.
Enrollment in Medicare Advantage plans, privately run versions of the government’s Medicare program, also grew to 1.5 million, a 15% increase.
The enrollment growth and IngenioRx boosted the company’s operating revenue by 9%, to $32.1 billion in the quarter. The figure excludes investment gains.
Wall Street had been looking for revenue of $32.97 billion.
Net income climbed 9% to $1.66 billion even though the company’s commercial business took a hit from costs tied to the COVID-19 pandemic, with Anthem covering the administration of tests and vaccinations.
Adjusted earnings totaled $7.01 in the quarter that ended March 31. Analysts were expecting $6.38 per share on average.
Shares of Anthem Inc. slipped $2.81 to $379.07 in premarket trading Wednesday. The stock had already climbed about 19% so far this year, as of Tuesday’s close.
