Free Trial

New enrollments push Anthem beyond expectations in Q1

In this May 14, 2019, file photo a flag flies outside the corporate headquarters building of health insurance company Anthem in Indianapolis. Anthem delivered a better-than-expected first quarter and pushed its 2021 forecast past expectations, as growing enrollment and a pharmacy benefits business helped the health insurer. The Blue Cross-Blue Shield insurer said Wednesday, April 21, 2021, that it now expects full-year earnings to come in at greater than $25.10 per share. (AP Photo/Michael Conroy, File)

INDIANAPOLIS (AP) — Anthem delivered a better-than-expected first quarter and pushed its 2021 forecast past expectations as enrollment growth lifted the health insurer.

A 20% jump in membership for state and federally funded Medicaid plans that Anthem manages spurred a 3% overall enrollment gain compared to last year's opening quarter.

The Blue Cross-Blue Shield insurer has 43.5 million customers and is the nation's second-largest health insurer, trailing only UnitedHealthcare.

Anthem said Wednesday it has about 9.2 million Medicaid customers, up from 7.6 million last year. Growth was helped by a temporary suspension during the COVID-19 pandemic of state requirements that Medicaid customers certify they are still eligible to receive the benefits.

Indianapolis-based Anthem covers people in several states, including big markets like New York and California. It also runs a pharmacy benefits management business called IngenioRx.

The insurer also booked 15% enrollment growth in its smaller Medicare Advantage business.

Those gains and growth from IngenioRx helped boost company operating revenue by 9%, to $32.1 billion in the quarter. The figure excludes investment gains.

Wall Street had been looking for revenue of $32.97 billion.

Net income climbed 9% to $1.66 billion even though the company’s business took a hit from costs tied to the COVID-19 pandemic, with Anthem covering the administration of tests and vaccinations.

But company officials also told analysts during a conference call that hospitalizations tied to COVID dropped earlier and sharper than they anticipated in the quarter.

Adjusted earnings ended up at $7.01 in the quarter that ended March 31. Analysts were expecting $6.38 per share on average.

The Blue Cross-Blue Shield insurer said Wednesday that it now expects full-year adjusted earnings to come in at greater than $25.10 per share after starting 2021 with a forecast that fell well short of Wall Street projections.

Analysts expect, on average, earnings of $24.70 per share, according to FactSet.

Shares of Anthem Inc. slipped 81 cents to $381.07 while broader trading indexes rose slightly in late-morning trading Wednesday. The stock had already climbed about 19% so far this year, as of Tuesday’s close.

That's nearly twice as high as the S&P 500's advance over the same span.

___

Follow Tom Murphy on Twitter: @thpmurphy

Should You Invest $1,000 in Anthem Right Now?

Before you consider Anthem, you'll want to hear this.

MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Anthem wasn't on the list.

While Anthem currently has a Hold rating among analysts, top-rated analysts believe these five stocks are better buys.

View The Five Stocks Here

These 7 Stocks Will Be Magnificent in 2025 Cover

Discover the next wave of investment opportunities with our report, 7 Stocks That Will Be Magnificent in 2025. Explore companies poised to replicate the growth, innovation, and value creation of the tech giants dominating today's markets.

Get This Free Report
Like this article? Share it with a colleague.

Companies Mentioned in This Article

CompanyMarketRankâ„¢Current PricePrice ChangeDividend YieldP/E RatioConsensus RatingConsensus Price Target
Anthem (ANTM)N/A$0.00-100.0%14.83N/AN/A
Compare These Stocks  Add These Stocks to My Watchlist 

Featured Articles and Offers

Recent Videos

3 Made in America Stocks Under $20 You Need to See!
3 Cheap Growth Stocks Set to Explode This Summer
The Next NVIDIA? Quantum Computing Stocks Set for Explosive Growth

Stock Lists

All Stock Lists

Investing Tools

Calendars and Tools

Search Headlines