On October 18, 2023, Elevance Health Inc (ELV, Financial) released its third quarter 2023 results, demonstrating a robust financial performance across the enterprise. The company's President and CEO, Gail K. Boudreaux, attributed the solid performance to the strength and balance of ELV's diversified portfolio of businesses, continuous investments in innovation and growth, and a relentless focus on affordability, simplicity, and customer experience.
Financial Highlights
Elevance Health Inc (ELV, Financial) reported a GAAP net income of $5.45 per share in the third quarter, including net negative adjustment items of $3.54 per share. The adjusted net income was $8.99 per share. The company's medical membership totaled approximately 47.3 million as of September 30, 2023, a slight increase of 0.1 percent year-over-year.
Operating revenue for the third quarter of 2023 was $42.5 billion, marking an increase of $2.9 billion or 7.2 percent year-over-year. This increase was primarily driven by higher premium revenue in the Health Benefits business and growth in pharmacy product revenue in CarelonRx.
Operational Efficiency and Share Repurchase Program
The operating expense ratio was 12.9% in the third quarter of 2023, an increase of 150 basis points from 11.4% in the third quarter of 2022. This increase was due to a business optimization charge recognized in the quarter. During the third quarter of 2023, the company repurchased 1.1 million shares of its common stock for $480 million, at a weighted average price of $451.68.
Outlook
As a result of outperformance year-to-date, Elevance Health Inc (ELV, Financial) now expects GAAP net income to be greater than $26.40 per share in 2023, and adjusted net income to be greater than $33.00 per share.
Overall, the company's Q3 2023 results reflect a strong financial performance, with significant growth in operating revenue and a robust share repurchase program. The company's strategic investments and focus on operational efficiency have positioned it well to meet its commitments to all stakeholders while advancing its whole health strategy.
