By Anna Wilde Mathews

Elevance Health delivered earnings and 2025 guidance that broadly met analysts' expectations, likely providing some relief to investors after a difficult third quarter.

The fourth-quarter results marked the first high-profile public event for Elevance since the shooting last month of an insurance-industry executive, an episode that unleashed a flood of online vitriol against health insurers.

Elevance spent part of its earnings call defending its role in the healthcare system.

The company aimed to bring down costs and was working with hospitals to smooth friction and reduce the number of claims denied, Chief Executive Gail Boudreaux said. Boudreaux said the company's goal was to "improve the health of humanity."

Analysts focused on next year's guidance, medical costs and Medicaid, where Elevance has struggled. The medical-loss ratio, which compares health costs to premium revenue, rose to 92.4% in the quarter, largely due to Medicaid costs. It was slightly better than analysts expected.

Boudreaux said Medicaid rates still fall short of what Elevance wants, but it expects them to improve. She said Elevance is being prudent and cautious in projections for next year.

Some highlights:

-- Elevance targets adjusted earnings of $34.15 to $34.85 a share in 2025. Analysts polled by FactSet had forecast $34.52.

-- Elevance expects a full-year medical-loss ratio of about 89.1%, higher than the earlier FactSet consensus of 88.9%.

-- Quarterly adjusted earnings totaled $3.84 a share, beating the consensus forecast by three cents.

The results and guidance were "mixed but better than feared," Leerink analysts wrote in a note to clients.

Elevance shares rose in early trading.

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(END) Dow Jones Newswires

January 23, 2025 09:54 ET (14:54 GMT)

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