Elevance Health (ELV, Financial) experienced a significant drop in its stock price, opening with a decline of over 18% and hitting a new low. As of the latest update, the stock has decreased by 13.68%, trading at $429. This downturn follows the release of the company's third-quarter financial results.
The report revealed a net profit of $1.01 billion, or $4.36 per share, for the quarter ending September 30, which is a decrease from the previous year's $1.3 billion, or $5.45 per share. Adjusted earnings per share stood at $8.37, falling short of analysts' expectations of $9.66 per share.
Despite the decrease in earnings, Elevance Health's operating revenue increased by $1.8 billion compared to the same period last year, reaching $13.8 billion. This growth was driven by the performance of Carelon services and increasing revenue from CarelonRx products.
However, the company reported a reduction in medical membership by 1.5 million, totaling approximately 45.8 million members. This decline resulted from re-determination of eligibility and business scope adjustments in certain Medicaid states. Elevance Health acknowledged ongoing challenges related to Medicaid, including lower membership numbers, which may impact its performance in 2024.
