Elevance Health (ELV, Financial) has reported impressive first-quarter earnings, surpassing initial projections. The company announced an adjusted earnings per share (EPS) of $11.97, which exceeds both their internal guidance of $11.62 and the consensus forecast of $11.32 from analysts, as well as Baird's projection of $11.63.
The company's improved financial performance is attributed to medical costs that aligned with their expectations, particularly in the Medicare Advantage sector. Despite ongoing elevated cost trends within Medicare Advantage, Elevance's results were consistent with their anticipations and pricing strategies.
This positive earnings report contrasts sharply with the results of UnitedHealth (UNH), which posted less favorable financial figures. As a result, Elevance Health's strong performance could prompt a modest increase in its stock value, projected as a low single-digit percentage rise.
Baird maintains a Neutral rating on Elevance Health, setting a price target of $529. This outlook suggests a steady future for Elevance, although the market will be closely observing how the company navigates ongoing cost challenges.
