Elevance Health (ELV, Financial) is showing steady progress with its Q3 2024 results, pulling in $44.7 billion in operating revenue, up 5.3% from last year. Despite facing headwinds in Medicaid, the company continues to manage costs well, keeping its adjusted operating gain strong at $2.4 billion. However, challenges from Medicaid membership losses led to a 19.8% dip in operating gain to $1.4 billion. These results reflect both the complexity of the current healthcare landscape and Elevance's ability to adapt with focused cost-cutting strategies.
The Health Benefits segment saw a modest 4.2% boost in revenue to $38.3 billion but took a hit in operating gain, which dropped by 12.5% to $1.6 billion. The decline came from the fallout of Medicaid redeterminations, trimming its membership and pushing margins down. On the other hand, Carelon, which includes pharmacy and care services, surged ahead with a 15% revenue jump to $13.8 billion, and a 20% rise in operating gain to $0.8 billion, buoyed by strong demand for its products and the integration of Paragon Healthcare.
Looking ahead, Elevance remains confident, declaring a $1.63 per share dividend for Q4 2024 and executing a $60 million share buyback. The company is expecting full-year GAAP net income per share of $26.50 and adjusted net income of $33.00. Despite ongoing Medicaid challenges, Elevance is positioning itself to capitalize on efficiencies and emerge stronger, making it clear that they're in for the long haul.
