Anthem Posts Lower Quarterly Profit, Higher Revenue -- Update
April 29 2020 - 7:29AM
Dow Jones News
By Dave Sebastian
Anthem Inc. reported lower first-quarter profit and higher
revenue as it responds to a membership battling the Covid-19
pandemic.
The health insurer on Wednesday posted net income of $1.52
billion, or $5.94 a share, compared with $1.55 billion, or $5.91 a
share, in the comparable quarter last year. Adjusted earnings were
$6.48 a share.
Analysts polled by FactSet were looking for $6.30 a share, or
$6.47 a share on an adjusted basis.
Medical-loss ratio, which represents the share of premiums the
insurer pays out in claims, was 84.2% for the quarter, meeting
analysts' expectations. Its ratio was 84.4% in the year-earlier
period. Investors watch the MLR as a gauge of health spending and
insurers' operational profitability.
Revenue rose 20.1% to $29.62 billion, driven by pharmacy product
revenue related to the launch of the pharmacy-benefits manager
IngenioRx. Analysts were looking for $28.69 billion. Expenses rose
21.2% to $27.53 billion.
The company's medical enrollment rose 3.2% to 42.1 million on
March 31, partly driven by the addition of Medicaid members in
Missouri and Nebraska, it said.
Anthem lowered its outlook for full-year earnings to more than
$21 a share, compared with its prior guidance of more than $21.44 a
share. It continues to see adjusted earnings of more than $22.30 a
share. The company withdrew its other financial-guidance metrics
due to the pandemic's uncertainty.
The company last month said it would waive copays, coinsurance
and deductibles for in-network medical visits associated with
Covid-19 testing. Anthem also said it would waive expenses for
phone and video medical consultations for its members and relax
early-refill limits on certain prescriptions to help patients stock
up on necessary drugs.
Write to Dave Sebastian at dave.sebastian@wsj.com
(END) Dow Jones Newswires
April 29, 2020 07:14 ET (11:14 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
Anthem (NYSE:ANTM)
Historical Stock Chart
From Aug 2024 to Sep 2024
Anthem (NYSE:ANTM)
Historical Stock Chart
From Sep 2023 to Sep 2024