Elevance Health Inc.’s stock ELV rose 5% in premarket trade Wednesday, after the health insurer’s second-quarter earnings handily beat estimates. The company posted net income of $1.853 billion, or $7.79 a share, for the quarter, up from $1.637 billion, or $6.73 a share, in the year-earlier period. Adjusted per-share earnings came to $9.04, ahead of the $8.78 FactSet consensus. Revenue rose 12.7% to $43.672 billion from $38.632 billion, also ahead of the $41.636 billion FactSet consensus. “Given the strong performance in the first half of the year and momentum across Elevance Health, we now expect GAAP net income to be greater than $29.09 per share in 2023, and adjusted net income to be greater than $32.85 per share,” the company said in a statement. The current FactSet consensus is for full-year EPS of $32.77. The company’s benefit expense ratio was 86.4% in the quarter, down 70 basis points from the year-earlier period, mostly due to premium rate adjustments to more accurately reflect cost of care. Health insurers have seen their costs rise this year as seniors are catching up on hip and knee surgeries that were delayed by the COVID pandemic. Elevance’s stock has fallen 13% in the year to date, while the S&P 500 SPX has gained 18.6%.
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