Elevance Health stock surges on earnings beat, full-year forecast
Shares of Elevance Health jumped after topping its second-quarter earnings expectations and issuing a strong full-year outlook. Yahoo Finance Live take a look into the stock action surrounding the health insurance provider.
Video transcript
JULIE HYMAN: Finally, a stock that's trending this morning. Elevance Health shares there are rising after the American health care company raised its full year guidance above what Wall Street had estimated. Quarterly earnings also beating on lower than expected. Medical costs at its health insurance [? unit. ?]
And the stock is up by some 7% today. OK, I've have been watching the medical cost ratio, right? Which ticked up at United Health. right? A bigger competitor but it looks like--
DIANE KING HALL: And look, Elevance also increased the cost of or the rate of premiums. So it's, you know, that pricing helping Elevance. I mean, this we know is the artist formerly known as Anthem. So, yes, so, we know that they just have that name strength there.
You know, they have a strong position within that market. And then, they also saw membership growth in Medicaid, Medicare, and higher pharmacy revenue. So that was definitely acreative.
ALEXANDRA CANAL: And the-- it's pretty positive right now. There is some commentary from JP Morgan. Saying, the beat and raise reflect strong fundamental performance and should help alleviate recent cost trend and utilization concerns. I think investors will be focused on those cost trends in the back half of the year.
RBC capital markets also called the results solid. Both of those Banks have overweight ratings on them right now. But I do think health care is having a bit of a moment right now, right? I mean, between pickleball leading to more insurance claims.
You have those Zembic craze. We have the FDA approving the first over-the-counter birth control drug. I mean, there's a lot happening in this space right now. And Julie, as you were just saying, the sector is up about 1% today.
JULIE HYMAN: Yeah, it is. Although, Elevance has not done well this year. It's down about 7% or so, I believe for the year to date. So, typically, when you have people worried about the economy they go into a place like health insurers. So maybe people aren't that worried right now. We're not seeing that kind of surge into those kinds of stocks.
DIANE KING HALL: Yeah, we'll see what happens to it through the balance of the year. Ale Canal, thank you so much.
