Here are the specific viewpoints from the earnings call:
Bullish Points:
1. Elevance Health reported fourth quarter GAAP diluted earnings per share of $1.81 and adjusted diluted earnings per share of $3.84, consistent with expectations.
2. The company anticipates Medicare Advantage membership growth in the range of 7% to 9% for 2025, with strong retention and new wins in group MA.
3. Elevance Health welcomed 18 new national accounts for 2025, including several who selected them as the sole source provider to manage their medical and pharmacy benefits.
4. The individual exchange business experienced strong growth of more than 30% in 2024, with expectations for another year of strong growth in 2025.
5. Carelon Services experienced impressive internal and external growth in 2024, with revenue growth expected to be above the long-term target range for this segment in 2025.
6. The company is providing guidance for adjusted diluted earnings per share to be in the range of $34.15 to $34.85 for 2025.
7. Elevance Health's board of directors approved a 5% increase in the quarterly dividend to $1.71 per share, marking the 14th consecutive annual increase.
8. The company anticipates operating revenue to grow in the high single to low double-digit percent range for 2025, bolstered by acquisitions like CareBridge.
Bearish Points:
1. Fourth quarter Medicaid cost trend remained elevated, with rates today remaining insufficient to cover the elevated level of cost trend experienced.
2. The consolidated benefit expense ratio for the fourth quarter was 92.4%, bringing the full-year ratio to 88.5%, reflecting elevated cost trends within the Medicaid population.
3. The company expects higher-than-typical Medicaid cost trends to persist into the first half of 2025, with current rates not yet fully catching up to these cost trends.
4. The adjusted operating expense ratio for the full year was 10.6%, an improvement but still reflecting a focus on disciplined expense management and operating efficiencies.
5. The company is maintaining a prudent stance on how quickly Medicaid margins will rebound in 2025, expecting stabilization in the early part of the year followed by improvement in the second half.
For more information about Elevance Health's earnings call, you can read the relevant news: Elevance Health (ELV) Q4 2024 Earnings Call Transcript
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