Elevance Health shares rise on pre-market earnings report

Elevance Health released fourth-quarter earnings that topped analyst expectations, sending its stock higher in pre-market trading Thursday.

Shares of Elevance gained more than 4% to $408 a share before the bell. However, the company also reported higher medical expenses, mainly from its Medicaid business.

Indianapolis-based Elevance, which operates Anthem Blue Cross and Blue Shield, reported net income of $418 million for the fourth quarter. The company posted adjusted earnings per share $3.84 per share. Analysts were expecting $3.80, according to MarketBeat.

For the full year, Elevance reported profit of $5.98 billion, or $25.68 per share.

The company’s fourth-quarter revenue was $45.4 billion, an increase of 6.6% from the same period the year before. For all of 2024, Elevance posted revenue of $177 billion, up 3.3% from 2023.

Elevance said the increase in revenue was driven by higher premium yields in its health benefits segment, acquisitions and growth in its CarelonRx pharmacy benefits manager, or PBM, division.

The company said those gains were partially offset by membership attrition in its Medicaid business. Elevance reported that its medical loss ratio (the percentage of premium dollars paid out for medical costs) was 92.4% in the fourth quarter, up 3.2% from a year ago.

“Our fourth quarter results demonstrate tangible progress in improving our operations in response to the dynamic environment facing the industry,” Elevance CEO Gail Boudreaux said in a written statement. “As we look to 2025, we remain resolute in our goal to simplify the health care experience, deepen the impact of Carelon and deploy innovative care models, positioning us to achieve sustainable growth over the long run.”

For the full-year 2025, Elevance said it expected adjusted diluted earnings per share to be $34.15 to $34.85.