Elevance Sees Double-Digit Percentage EPS Growth for Fifth Consecutive Year

Elevance Health, Inc. on Jan. 25 reported adjusted earnings per share (EPS) of $29.07 in 2022, representing a 12% increase from 2021. Gail Boudreaux, the company’s president and CEO, told analysts on a conference call that it was the fifth consecutive year in which Elevance’s adjusted EPS had hit or exceeded its 12% to 15% annual target increase. That came as the insurer, which was known as Anthem, Inc. until last year, ended the year with more than 47.5 million medical members, up nearly 2.2 million from the end of 2021. 

David Windley, a Jefferies analyst, wrote in a note to investors on Jan. 25 that Elevance’s fourth quarter “was solid (maybe not exceptional),” citing the company’s 89.4% medical loss ratio (MLR) and adjusted EPS of $5.23, which beat the Wall Street consensus estimate of 90.1% and $5.19, respectively. Windley noted that Elevance “still has a long way to go” with improving its full-year 5.4% operating margin, although he noted the 3.4% fourth-quarter operating margin was a 10 basis-point improvement from the fourth quarter of 2021.