By Dean Seal

Elevance Health lowered its profit guidance but held tight on its adjusted earnings target for the year after higher yields and more members boosted first-quarter revenue.

The insurer said it now expects earnings of $28.30 to $29 a share this year, down from a forecast of $30.40 to $31.10 a share that it targeted back in March. Adjusted earnings, which strip out one-time items, are still projected to hit $34.15 to $34.85 a share.

For the first quarter, Elevance posted a profit of $2.18 billion, or $9.61 a share, compared with $2.25 billion, or $9.59 a share, in the same period a year earlier on a higher base of shares.

Adjusted earnings were $11.97 a share. Analysts polled by FactSet had been expecting $11.41 a share.

Revenue rose 15% to $48.8 billion, topping analyst projections for $46.3 billion, according to FactSet.

The top line got a lift from higher premium yields in its health benefits business, CarelonRx product revenue, acquisitions and more members in Medicare Advantage and individual Affordable Care Act membership, Elevance said.

Medical membership ticked up by almost 100,000 to 45.8 million as of March 31, driven by gains in Medicare Advantage and commercial risk-based members that were partially offset by a decline in fee-based membership from its commercial division.

The benefit-expense ratio--a measure of medical costs as a percentage of premium revenue--was 86.4%, up 80 basis points from a year ago due to higher Medicaid medical costs.

Write to Dean Seal at dean.seal@wsj.com

(END) Dow Jones Newswires

April 22, 2025 06:18 ET (10:18 GMT)

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