ANTM Anthem Inc

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. Shares outstanding fell 2.2% to 256.4 million.

Adjusted earnings were $6.48 a share, beating analysts' expectations by a penny, according to FactSet.

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 07:50 ET (11:50 GMT)

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