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

  • Oct 18, 2024

    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.  

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  • Tim Casey

    Tim has been a reporter and editor for newspapers, websites and magazines for more than 20 years, including 10 years covering health care business topics. He has a deep knowledge of the managed care industry and pharmacy benefit management. He also has experience covering medical conferences and clinical and legislative health care issues. In 2014, the Society for Advancing Business Editing and Writing selected Tim as one of 15 journalists to participate in a national symposium on the Affordable Care Act. Tim has a B.A. in Psychology from the University of Notre Dame and an M.B.A. from Georgetown University.

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