Elevance’s EPS Guidance Cut ‘Suggests Pain Isn’t Over’ for Medicaid MCOs

Elevance Health, Inc. disclosed in its third-quarter earnings release on Oct. 17 that it significantly lowered profit guidance for this year, citing higher utilization in Medicaid as the primary driver. Although executives said they remained confident about the company’s long-term growth, Elevance’s stock price declined by more than 12% and analysts noted they did not anticipate the insurer’s announcement.  

Elevance had adjusted diluted earnings per share (EPS) of $8.37 in the third quarter, well below the $9.66 Wall Street consensus. The company now expects adjusted diluted EPS of about $33 this year, down from its previous estimate of at least $37.20, which it revealed during its first-quarter earnings call and reaffirmed during its second-quarter earnings call in July.