Why Has Anthem Stock Rallied 20% Over The Last Month?

by Trefis Team
Rate   |   votes   |   Share

Health insurance major Anthem (NYSE: ANTM) has seen its stock price rally by about 20% over the last month, driven partly by strong Q3 results. Adjusted Q3 EPS grew by about 28% YoY to $4.87, ahead of the consensus estimates of $4.82. While part of the EPS bump was driven by share repurchases, the company benefited from new Medicaid businesses, membership growth, and higher premiums. Total Medical Memberships expanded 2.7% to 41 million. The company also upped its guidance for the full year, indicating that adjusted EPS would come in at over $19.40, up from its previous guidance indicating that EPS would stand at over $19.30.

We ‘step back’ from these recent swings to review Anthem’s performance over the last few years, as a context for what might come next. Our Interactive dashboard, Why Has Anthem Stock Rallied Over The Last Month? reviews the near term reasons and the big picture.

The context for the last few years:

A closer look At Anthem’s Total Revenues over the last few years and the outlook

 

Total Revenues for Anthem slightly increased from $90.0 Bil in 2017 to $92.1 Bil in 2018; an increase of 2.29%.

This compares with Total Revenues growth of:

  • 7.15% in 2015
  • 7.21% in 2016
  • 6.10% in 2017

We expect Total Revenues growth to be 11.8% in 2019, driven by the company’s new Medicaid businesses and the expansions and membership growth of its Medicare business.

A closer look At Anthem’s Total Expenses over the last few years and the outlook

Total Expense for Anthem marginally increased from $86.1 Bil in 2017 to $87.0 Bil in 2018; an increase of 1.12%.

This compares with Total Expense growth of:

  • 7.22% in 2015
  • 7.76% in 2016
  • 7.18% in 2017

We expect Total Expense growth to be 11% in 2019.

How does Anthem’s Revenue Growth compare with rivals?

For more information on How Anthem’s revenue growth compares with rivals, view our interactive dashboard analysis.

How has  Anthem’s EBT trended?

EBT for Anthem increased significantly by 27.9% from $3.96 Bil in 2017 to $5.07 Bil in 2018.

We expect EBT to increase by 19% to $6 Bil in 2019.

How has Anthem’s Net Income and EPS trended?

For more information on Anthem’s Net Income and EPS, view our interactive dashboard analysis.

 

What’s behind Trefis? See How it’s Powering New Collaboration and What-Ifs

For CFOs and Finance Teams | Product, R&D, and Marketing Teams

More Trefis Data

Like our charts? Explore example interactive dashboards and create your own.

Rate   |   votes   |   Share

Comments

Name (Required)
Email (Required, but never displayed)
Be the first to comment!