Anthem, Inc. ANTM is one of the premier healthcare service providers when it comes to providing medical and specialty products.
The company’s diverse product portfolio has helped in improving underwriting results. Its strategic acquisitions, divestitures and ACO arrangements pave the way for long-term growth. The company’s rising level of medical membership continues to boost the top line. Its strong capital position backs effective capital deployment via share buyback programs and regular dividend payments.
However, loss incurred on public exchange business continues to bother. Also rising level of debt and expenses keep draining the margins.
Anthem has a decent history when it comes to earnings as the company has beaten estimates in all of the last four quarters, making for an average beat of 9.6%.
Currently, Anthem holds a Zacks Rank #1 (Strong Buy), but that could definitely change following its earnings report which was just released. You can see the complete list of today’s Zacks #1 Rank stocks here.
We have highlighted some of the key stats from this just-revealed announcement below:
Earnings: Anthem beats on earnings. Our consensus called for EPS of $1.25, and the company reported EPS of $1.29. Earnings, however declined 26.7% year-over-year.
Anthem, Inc. Price and EPS Surprise
Revenue: Operating revenues also beat our estimate. Our consensus called for revenues of $22.1 billion, and the company reported revenues of $22.4 billion. Revenues rose 4.5% year over year.
Key Stats to Note: Medical enrollment grew 0.8% to 40.2 million.
However, fourth quarter benefit expense ratio deteriorated 140 basis points year over year to 88.6%.
The selling, general and administrative expense ratio was 15.1%, improving 10 basis points year over year.
Operating cash outflow for the fourth quarter was $1.3 billion that results in operating cash flow to $4.2 billion for 2017 or 3.2 times net income.
2018 Guidance
For 2018, the company expects adjusted net income to be greater than $15.00 per share, medical membership is expected to be in the range of 40 – 40.2 million; operating revenue to be roughly between $90.5 – $91.5 billion. Operating cash flow is expected to be greater than $4 billion.
Check back later for our full write up on this ANTM earnings report later!
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