Elevance Health Reports 5.3% Revenue Growth, Net Income Decline in Q3 2024

Elevance Health, Inc. reported its financial results for the third quarter and the nine months ended September 30, 2024, highlighting significant changes in revenue, profitability, and strategic developments compared to the previous fiscal period.

For the three months ended September 30, 2024, Elevance Health generated total revenues of $45,106 million, a 5.3% increase from $42,849 million in the same period of 2023. Total operating revenue for the quarter was $44,719 million, up from $42,480 million. However, net income for the quarter decreased to $1,008 million, down 22.5% from $1,300 million in Q3 2023. This decline in net income was attributed to rising medical cost trends and increased expenses related to the Provider Settlement Agreement from the Blue Cross Blue Shield Association (BCBSA) litigation.

For the nine months ended September 30, 2024, total revenues rose to $131,569 million, compared to $128,693 million in the prior year, marking a 2.2% increase. Net income for this period increased to $5,558 million, up 7.7% from $5,160 million in 2023. The diluted earnings per share for the nine months was $23.81, reflecting a 10.4% increase from $21.56 in the previous year.

Elevance Health's total assets grew to $116,533 million as of September 30, 2024, up from $108,928 million at the end of 2023. Cash and cash equivalents also increased significantly to $7,866 million, compared to $6,526 million at year-end 2023. The company’s total liabilities, including long-term debt, rose to $24,688 million from $23,246 million.

Strategically, Elevance Health completed the acquisition of Paragon Healthcare, Inc. in March 2024, enhancing its CarelonRx segment, which provides pharmacy services. The company also divested its life and disability businesses to StanCorp Financial Group, resulting in a gain of $201 million. Additionally, Elevance Health announced pending acquisitions, including Centers Plan for Healthy Living LLC and RSV QOZB LTSS, Inc., expected to close in late 2024 or early 2025.

The company has initiated a "Business Efficiency Program" aimed at optimizing operations, which included staff reductions and IT asset write-offs, with total costs incurred in Q3 2024 amounting to $268 million. As of September 30, 2024, the company reported a total of 45.76 million medical members, reflecting a 3.3% decline from the previous year, primarily due to Medicaid membership attrition.

Overall, Elevance Health's financial performance indicates growth in revenues and net income for the nine-month period, despite challenges in the third quarter related to rising costs and litigation expenses.