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Elevance Health Stock Rises as Company Tops Estimates, Raises Dividend
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Main points
- Elevance Health reported better-than-expected results and raised its dividend as the company benefited from higher premiums, acquisitions and growth in its pharmaceuticals division.
- Both earnings and revenue beat analysts’ expectations, with CEO Gail Boudreaux saying it had “made real progress in improving our operations.”
- Elevance raised its quarterly dividend to a range of $0.08 to $1.71 per share.
Elevance Health Stock (in principle) rose on Thursday after the health insurer reported better-than-expected results on premium increases, acquisitions and growth in its pharmacy insurance unit. It also increased its dividend.
The company reported fourth-quarter adjusted Earnings per share (EPS) 3.84 US dollars, operating income increased 6% year-on-year to US$45 billion. Both beat analyst estimates compiled by Visible Alpha.
Health benefits segment revenue rose 3% to $37.6 billion, driven by higher premium yields. Carelon segment revenue grew 19% to $14.7 billion due to “the launch and growth of risk-based capabilities within Carelon Services and acquisitions completed in 2024.”
CEO praises ‘real progress in improving our operations’
Chief executive Gail Boudreaux said the results demonstrated “tangible progress as we improve our operations to respond to the dynamic environment facing the industry”.
Elevance announced it will increase its quarterly dividend per share from $1.63 to $1.71. The first quarter dividend will be paid on March 25 to shareholders of record at the close of business on March 10.
Although up about 3% today, Elevance Health’s stock price has fallen about 15% in the last year.
trading view
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