Anthem lifts FY22 adjusted EPS outlook boosted by Q1 results

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Anthem (NYSE: ANTM) Q1 results beat analysts’ estimates and the company raised its adjusted EPS outlook ‘based on stronger than expected first quarter results.’

Last week, UnitedHealth (UNH) boosted its FY22 EPS outlook on the back of its Q1 performance

Anthem’s (ANTM) revenue from premiums rose + 18.46% Y / Y to ~ $ 32.79B; while total operating revenue grew + 18.03% Y / Y to ~ $ 37.89B.

The Indianapolis-based company said the increase was driven by higher premium revenue due to membership growth in Medicaid, the acquisitions of MMM and Paramount, growth in Medicare Advantage and Commercial risk-based membership, and premium rate increases to cover overall cost trends.

The company added that the increase was also due to growth in pharmacy product revenue within IngenioRx.

Revenue from IngenioRx segment grew + 14.01% Y / Y to ~ $ 6.68B.

Government Business revenue rose + 23.21% Y / Y to ~ $ 23.76B, while revenue from Commercial & Specialty Business increased + 8.2% Y / Y to ~ $ 10.27B.

Medical enrollment increased 7.5% Y / Y to ~ 46.8M.

The company said Government Business enrollment increased by 2.1M lives Y / Y mainly due to organic growth in the Medicaid business, aided by the suspension of eligibility recertification efforts in its markets, acquisitions of MMM and Paramount Advantage, launch of HealthyBlue in North Carolina, and organic growth in Medicare Advantage.

Meanwhile, Commercial & Specialty Business enrollment increased by 1.1MY / Y mainly driven by strong sales in both fee-based and risk-based businesses.

The benefit expense ratio was 86.1% in Q1, an increase of 50 basis points Y / Y. Adjusted net income per share rose + 17.7% Y / Y to $ 8.25.

Buyback Program: The company said that during Q1 it bought back 1.2M common shares for $ 545M. As of March 31, the company had ~ $ 3.6B worth of share repurchase authorization remaining.

Outlook:

The company said it now expects 2022 adjusted net income to be greater than $ 28.40 per share, compared to prior estimate of $ 28.25. Consensus EPS Estimate for 2022 is $ 28.47.

Anthem (ANTM) added that it now expects GAAP net income to be greater than $ 26.43 per share, including ~ $ 1.97 per share of net unfavorable items.

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