Latest news with #Carelon
Yahoo
3 days ago
- Business
- Yahoo
Elevance Health, Inc. (ELV) Downgrades 2025 Earnings Amid Rising Medical Costs
We recently compiled a list of Elevance Health, Inc. stands third on our list among the most undervalued healthcare stocks. Elevance Health, Inc. (NYSE:ELV) is a major U.S. healthcare company, known for its insurance brands Anthem and WellPoint, and its growing Carelon health services arm. It serves around 45.6 million medical plan members and is recognized for integrating technology and value-based care to improve healthcare delivery. The company is facing increased healthcare utilization and rising medical costs, especially in the ACA and Medicaid segments. This has led to a downgrade in full-year 2025 earnings. A 'market-wide morbidity shift' is evident, with new ACA enrollees using emergency services at nearly double the rate of commercial members, and Medicaid patients showing higher acuity due to redeterminations. Amid these challenges, some investors see Elevance Health, Inc. (NYSE:ELV) as one of the most undervalued stocks in the healthcare sector, given its long-term positioning and strategic adjustments. The company expects a surge in elective procedures by Q4 2025 as members act ahead of expiring tax credits in 2026 that could raise their out-of-pocket costs. To address these pressures, the business is ramping up AI-driven tools for risk detection, care coordination, and operational efficiency. It's also expanding value-based care contracts, particularly in behavioral health and oncology, with over one-third of benefit expenses tied to risk-sharing models. The company is adjusting pricing strategies for ACA plans and advocating for Medicaid access amid potential regulatory changes. A healthcare professional discussing a treatment plan with a patient in an outpatient clinic. Though total membership fell by 212,000 in Q2 due to Medicaid attrition, the Medicare Advantage segment continues to grow. Elevance Health, Inc. (NYSE:ELV) is prioritizing long-term financial stability over aggressive member growth as it navigates rising costs, shifting regulations, and post-pandemic care patterns. While we acknowledge the potential of GOOGL as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money. Disclosure: None.
Yahoo
4 days ago
- Business
- Yahoo
Elevance Health, Inc. (ELV) Downgrades 2025 Earnings Amid Rising Medical Costs
We recently compiled a list of Elevance Health, Inc. stands third on our list among the most undervalued healthcare stocks. Elevance Health, Inc. (NYSE:ELV) is a major U.S. healthcare company, known for its insurance brands Anthem and WellPoint, and its growing Carelon health services arm. It serves around 45.6 million medical plan members and is recognized for integrating technology and value-based care to improve healthcare delivery. The company is facing increased healthcare utilization and rising medical costs, especially in the ACA and Medicaid segments. This has led to a downgrade in full-year 2025 earnings. A 'market-wide morbidity shift' is evident, with new ACA enrollees using emergency services at nearly double the rate of commercial members, and Medicaid patients showing higher acuity due to redeterminations. Amid these challenges, some investors see Elevance Health, Inc. (NYSE:ELV) as one of the most undervalued stocks in the healthcare sector, given its long-term positioning and strategic adjustments. The company expects a surge in elective procedures by Q4 2025 as members act ahead of expiring tax credits in 2026 that could raise their out-of-pocket costs. To address these pressures, the business is ramping up AI-driven tools for risk detection, care coordination, and operational efficiency. It's also expanding value-based care contracts, particularly in behavioral health and oncology, with over one-third of benefit expenses tied to risk-sharing models. The company is adjusting pricing strategies for ACA plans and advocating for Medicaid access amid potential regulatory changes. A healthcare professional discussing a treatment plan with a patient in an outpatient clinic. Though total membership fell by 212,000 in Q2 due to Medicaid attrition, the Medicare Advantage segment continues to grow. Elevance Health, Inc. (NYSE:ELV) is prioritizing long-term financial stability over aggressive member growth as it navigates rising costs, shifting regulations, and post-pandemic care patterns. While we acknowledge the potential of GOOGL as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money. Disclosure: None. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
18-07-2025
- Business
- Yahoo
Elevance Health Tumbles After Slashing 2025 Outlook on Medicaid Weakness
Elevance Health (ELV, Financials) shares fell nearly 12% Thursday morning after the health insurer posted weaker-than-expected Q2 earnings and issued a major downgrade to its full-year profit forecast, citing rising medical costs in its Medicaid and ACA businesses. Warning! GuruFocus has detected 4 Warning Sign with AMZN. While revenue grew a strong 14.3% year over year to $49.42 billion, beating expectations, adjusted earnings came in at $8.84 per share, well below Wall Street's forecast of $9.20. The big issue: medical costs. The company's benefit expense ratio jumped to 88.9%, up 260 basis points from a year ago, driven by higher claims in Medicaid and Affordable Care Act plans. That pressure outweighed improving efficiency, as the operating expense ratio fell to 10.1%, thanks to disciplined cost controls and revenue leverage. Total medical membership dropped by 212,000 from Q1, with declines in Medicaid and ACA coverage offsetting gains in Medicare Advantage. Elevance's Carelon business, which includes home health and pharmacy services, was a bright spot revenues surged 36% to $18.1 billion, helped by acquisitions and strong product performance in CarelonRx. But that wasn't enough to cushion the blow. The company slashed its full-year EPS guidance to around $30, down from its prior $34.15$34.85 range and well below the Street's $34.40 consensus. We're adjusting our outlook to reflect what we're seeing in Medicaid and ACA, said CEO Gail Boudreaux, adding that Elevance remains focused on managing healthcare costs and making targeted tech investments to support long-term value. This article first appeared on GuruFocus.
Yahoo
17-07-2025
- Business
- Yahoo
Elevance Health shares dip on Q2 earnings, annual outlook miss
-- Shares in Elevance Health (NYSE: ELV) slumped over 8% on Thursday after the health insurance provider's second-quarter earnings and full-year guide missed analyst estimates. The company reported Q2 earnings per share (EPS) of $8.84, falling short of the $9.07 consensus estimate. Revenue for the period reached $49.4 billion, up from $43.2 billion in the year-ago quarter and ahead of expectations of $48.14 billion. The company's operating margin declined to 4.9% from 6.4% a year earlier. "In the second quarter, Elevance Health made meaningful progress in delivering an experience that is simple and personal to those we serve, while advancing our efforts to enhance efficiency across the healthcare system," said Gail K. Boudreaux, President and CEO of Elevance. "With the embedded earnings power of our diversified Health Benefits and Carelon businesses, we remain confident in achieving at least 12% average annual growth in adjusted diluted EPS over time," he added. For full-year 2025, Elevance now expects EPS of $30.00, well below the consensus forecast of $34.48. The company said the guidance revision reflects the continued, industry-wide pressure from elevated cost trends in the ACA and Medicaid segments. Related articles Elevance Health shares dip on Q2 earnings, annual outlook miss Risks Rising? Smart Money Dodged 46%+ Drawdowns on These High-Flying Names Surge of 50% since our AI selection, this chip giant still has great potential Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Forbes
17-07-2025
- Business
- Forbes
Elevance Health Is Latest Insurer To Cut Profit Targets As Costs Surge
Elevance Health Thursday became the latest health insurer to lower its profit forecast for the rest ... More of 2025 due to rising costs in its Medicaid plans and individual policies it sells under the Affordable Care Act. Elevance Health Thursday became the latest health insurer to lower its profit forecast for the rest of 2025 due to rising costs in its Medicaid plans and individual policies it sells under the Affordable Care Act. Citing the 'ongoing and industry-wide impact of elevated cost trends in ACA and Medicaid,' Elevance Health said it now expects adjusted net income per diluted share to be approximately $30.00. That compares to an earlier forecast of 2025 adjusted diluted earnings per share of $34.15 to $34.85. 'We are updating our outlook to reflect elevated medical cost trends in ACA and slower rate alignment in Medicaid,' Elevance Health president and chief executive Gail K. Boudreaux said in a statement accompanying earnings. 'While the external environment continues to evolve, we are focused on the areas within our control - managing healthcare costs, deploying targeted investments in advanced technology and value-based care delivery, and reinforcing the operational foundation that supports long-term value creation. With the embedded earnings power of our diversified Health Benefits and Carelon businesses, we remain confident in achieving at least 12% average annual growth in adjusted diluted EPS over time." The Elevance Health report comes after government-subsidized health insurance provider Centene withdrew its 2025 financial guidance earlier this month due to higher costs in the individual health plans it sells under the Affordable Care Act as well as rising expenses from enrollees in its Medicaid plans. Centene's announcement was only the latest from a parade of health insurance companies that have struggled in the last two years to control costs of subscribers in plans subsidized by the government. Just last week, Molina Healthcare lowered its earnings guidance for the rest of the year in the face of cost pressures in all three of the government-subsidized health insurance programs it helps manage: Medicaid, Medicare Advantage and individual coverage under the ACA, also known as Obamacare. And in May, UnitedHealth suspended its financial outlook for the rest of the year and replaced its top executive as the parent of UnitedHealthcare grapples with rising healthcare costs in its Medicare Advantage business. Medicare Advantage plans contract with the federal government to provide health benefits to seniors. In its second quarter, Elevance Health said net income fell 24% to $1.7 billion from $2.3 billion in the year ago quarter thanks in part to rising costs. Total revenues were up 14% to $49 billion.
