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Investing.com -- Shares in Elevance Health (NYSE: ELV) slumped over 8% on Thursday after the health insurance provider’s second-quarter earnings and full-year guide missed analyst estimates.
The company reported Q2 earnings per share (EPS) of $8.84, falling short of the $9.07 consensus estimate.
Revenue for the period reached $49.4 billion, up from $43.2 billion in the year-ago quarter and ahead of expectations of $48.14 billion.
The company’s operating margin declined to 4.9% from 6.4% a year earlier.
"In the second quarter, Elevance Health made meaningful progress in delivering an experience that is simple and personal to those we serve, while advancing our efforts to enhance efficiency across the healthcare system," said Gail K. Boudreaux, President and CEO of Elevance.
"With the embedded earnings power of our diversified Health Benefits and Carelon businesses, we remain confident in achieving at least 12% average annual growth in adjusted diluted EPS over time," he added.
For full-year 2025, Elevance now expects EPS of $30.00, well below the consensus forecast of $34.48.
The company said the guidance revision reflects the continued, industry-wide pressure from elevated cost trends in the ACA and Medicaid segments.