Elevance Stock Slides Despite Earnings Beat as Medicaid Membership Declines

Elevance Health (ELV) topped analyst expectations with its second-quarter results, but shares of the health insurance provider fell in intraday trading Wednesday amid declining Medicaid membership.

The Indianapolis company posted adjusted earnings per share (EPS) of $10.12 on operating revenue of $43.2 billion, topping analysts’ consensus estimates compiled by Visible Alpha of $10 per share on revenue of $42.9 billion. 

‘Attrition in Medicaid Membership’ Hits Revenue

Operating revenue declined less than 1% year-over-year, which the company attributed to “attrition in Medicaid membership,” partially offset by an increase in premium yields. The company’s Carelon brand, which is focused on whole healthcare, saw operating revenue of $13.3 billion, an increase of 10% from a ago. 

Elevance affirmed its full-year adjusted EPS guidance of at least $37.20. 

Shares of the company slid roughly 6% to $521.88 as of 10:47 a.m. ET Wednesday. They are up about 10% in 2024.