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Elevance Health, Inc. (NYSE:ELV), formerly known as Anthem, Inc., has reaffirmed its earnings guidance for the full year of 2025. Currently trading at a P/E ratio of 14.64 and near its 52-week low, InvestingPro analysis suggests the stock is undervalued. In a recent meeting with investors, company officers stated that they expect the full-year earnings to be between $28.30 and $29.00 per diluted share. This includes approximately $5.85 per diluted share of net unfavorable items. When these items are excluded, the adjusted earnings per share are projected to be between $34.15 and $34.85.
The Indianapolis-based health insurance provider, with a market capitalization of $84.95 billion and revenue growth of 6.63% in the last twelve months, also reiterated its benefit expense ratio guidance for the year, which is anticipated to be 89.1% plus or minus 50 basis points. Additionally, Elevance Health anticipates realizing 60% of its adjusted shareholders’ earnings per diluted share in the first half of 2025.
These forecasts take into account the company’s current view on market conditions, operational performance, regulatory and policy environments, and key business assumptions such as cost trends and medical claims payable estimates. Elevance Health’s management has cautioned that changes in these business factors or assumptions might lead to actual results that materially differ from the current guidance.
The information provided in this update is based on a press release statement and reflects management’s views as of the date of the report. The company has emphasized that the forward-looking statements are not guarantees of future performance and are subject to risks and uncertainties that could cause actual results to differ.
Elevance Health has a history of operating under different names, including Anthem, Inc., and WellPoint, Inc., and is incorporated in Indiana. The company has maintained dividend payments for 15 consecutive years, demonstrating strong financial stability. The company’s common stock is traded on the New York Stock Exchange under the ticker symbol ELV. For deeper insights into Elevance Health’s valuation and financial health metrics, access the comprehensive Pro Research Report available on InvestingPro.
In other recent news, Elevance Health Inc. reported a strong start to 2025 with its first-quarter financial results surpassing expectations. The company achieved an adjusted earnings per share (EPS) of $11.97, exceeding the consensus estimate of $11.08, and reported revenues of $48.8 billion, which also surpassed expectations. Elevance Health’s Carelon division notably contributed to this performance, with revenues climbing to $16.7 billion, a 37.9% increase year-over-year. The company reaffirmed its earnings guidance for the year, projecting an EPS range of $34.15 to $34.85.
Additionally, Bernstein analysts maintained their Outperform rating for Elevance Health with a price target of $585, citing confidence in the company’s growth prospects. Cantor Fitzgerald also reiterated an Overweight rating and a $485 price target, noting Elevance’s favorable performance compared to industry peers. Meanwhile, Elevance Health was implicated in a False Claims Act complaint filed by the United States, which alleges illegal kickbacks were paid by insurers to brokers, including SelectQuote, for Medicare Advantage plan enrollments. This legal development involves major health insurance companies such as Aetna and Humana (NYSE:HUM), alongside brokers like eHealth (NASDAQ:EHTH) and GoHealth.
Furthermore, Elevance Health’s Annual Meeting of Shareholders saw the election of directors and the approval of executive compensation, while a proposal for a Diversity, Equity, and Inclusion effectiveness report was not passed. These developments reflect ongoing confidence in the company’s strategic direction and management.
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