Elevance Health Stock Rises as Company Tops Estimates, Raises Dividend

Investopedia
01-24

Key Takeaways

  • Elevance Health reported stronger-than-expected results and raised its dividend as it benefited from higher premiums, acquisitions, and growth in its pharmacy division.
  • Both earnings and revenue exceeded analysts' forecasts on what CEO Gail Boudreaux called "tangible progress in improving our operations."
  • Elevance booted its quarterly dividend $0.08 to $1.71 per share.

Shares of Elevance Health (ELV) advanced Thursday after the health insurance provider reported better-than-anticipated results on higher premiums, acquisitions, and growth of its pharmacy coverage unit. It also raised its dividend.

The company posted fourth-quarter adjusted earnings per share (EPS) of $3.84, with operating revenue up 6% year-over-year to $45.0 billion. Both exceeded analysts' estimates compiled by Visible Alpha.

Revenue at the Health Benefits segment gained 3% to $37.6 billion, driven by rising premium yields. Revenue for the Carelon division climbed 19% to $14.7 billion on the "launch and growth of risk-based capabilities in Carelon Services and acquisitions completed in 2024."

CEO Touts 'Tangible Progress in Improving Our Operations'

CEO Gail Boudreaux said the performance demonstrates "tangible progress in improving our operations in response to the dynamic environment facing the industry."

Elevance announced it would increase its quarterly per-share dividend to $1.71 from $1.63. The first-quarter dividend is payable on March 25 to shareholders of record at the close of business on March 10.

Despite today’s roughly 3% rise, Elevance Health shares are down about 15% in the last year.

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