Elevance Health Stock Rises On Upbeat Q4 Revenue, Dividend Boost: Retail's Over The Moon
The firm’s medical-loss ratio (MLR) rose to 92.4% due to Medicaid-related costs but was better than expected.
FollowShares of Elevance Health Inc. climbed over 2.5% on Thursday morning, hitting levels last seen in early December.
The rise came as the health insurer reported better-than-expected fourth-quarter results and provided an upbeat outlook for 2025.
Adjusted Q4 earnings per share came in at $3.84, slightly below consensus estimates of $3.86, while revenue of $45 billion beat the $44.72 billion analyst consensus.
The firm’s medical-loss ratio (MLR) rose to 92.4% due to Medicaid-related costs but was better than expected.
The company announced a 5% increase in its quarterly dividend, raising it to $1.71 per share, payable on March 25 to shareholders of record as of March 10.
“Our fourth-quarter results demonstrate tangible progress in improving our operations in response to the dynamic environment facing the industry,” said CEO Gail Boudreaux.
Elevance expects FY25 adjusted EPS between $34.15 and $34.85, slightly below the $34.86 consensus estimate.
Elevance became one of the top 20 trending tickers on Stocktwits early on Thursday, with sentiment shifting to ‘extremely bullish’ following the earnings release.
Message volume spiked as users expressed optimism about the stock’s trajectory.
Some retail traders predicted that Elevance shares could exceed $450 during broader market rallies.
Elevance stock trades roughly 24% below its average price target of $496.65, according to Koyfin data.
While the stock has lost over 18% in the past year, it has rebounded by more than 7% year-to-date.
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