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Anthem's (ANTM) Q1 Earnings and Revenues Beat Estimates

Zacks Equity Research

Have you been eager to see how Anthem, Inc ANTM performed in Q1 in comparison with the market expectations? Let’s quickly scan through the key facts from this leading healthare company’s earnings release this morning.

An Earnings Beat

Anthem came out with operating earnings of $6.03 per share, which beat the Zacks Consensus Estimate by 2.9%.

Better-than-expected results were driven by higher membership across its businesses.

Anthem, Inc. Price and EPS Surprise

Anthem, Inc. Price and EPS Surprise | Anthem, Inc. Quote

Earnings Surprise History

Anthem has a decent earnings surprise history. The company delivered positive surprises in each of the last four quarters, with an average beat of 7.04%.

Revenue Came In a Bit Higher than Expected

Anthem posted revenues of $24.4 billion, beating the Zacks Consensus Estimate by 1.7%.

Key Q4 Statistics

The benefit expense ratio was 84.4%, up 290 basis points from the prior-year quarter.

Anthem spent $294 million in share buybacks.

Operating cash outflow at the end of first quarter was $1.6 billion, down 26.4% from 2018’s end level.

2019 Outlook Revised

Following solid first quarter results, Anthem has revised its outlook for 2019. The company’s adjusted net income is now expected to be higher than $19.20 per share, up from the prior estimate of more than $19 per share.

Medical membership is still estimated in the range of 40.9-41.3 million.

Operating revenues are projected to be around $100 billion including premium revenues of $90.5-$92.5 billion.

The company estimates the benefit expense ratio to be 86.2%, plus or minus 30 basis points.

What Zacks Rank Says

Anthem carries a Zacks Rank #2 (Buy). However, since the latest earnings performance yet to be reflected in the estimate revisions, the rank is subject to change. While things apparently look favorable, it all depends on what sense the just-released report makes to the analysts.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Check back later for our full write up on this Anthem earnings report!

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