Anthem Inc. (NYSE:ANTM) announced its results as it posted a higher profit in its fourth quarter, as revenue surged faster than expenses and the insurer saw higher Medicaid membership.
For the future the Anthem Inc. (NYSE:ANTM) anticipates 2017 adjusted net income per share much higher than $11.50. Analysts in the meantime expects $11.53 a share.
In the last three month period, total medical enrollment increased 3.4% to 39.9 million year over year. Enrollment in its profitable and specialty business increased 2.4% from year over year to 30.4 million members, while members in its government business surged 6.9% to 9.5 million.
The company overall announced a profit of $368.4 million, or $1.37 a share, up from $180.9 million, or 68 cents a share, year over year. On an adjusted basis, earnings were $1.76. Revenue of the Anthem Inc. surged 7.6% to $21.7 billion. In the meantime analysts gave an outlook of per-share earnings of $1.61 on revenue of $20.92 billion.
Meanwhile Medicaid membership surged 10% from the same period year before to 6.5 million in the quarter. Revenue from premiums surged 7.4% to $20.2 billion.
Furthermore Anthem (NYSE:ANTM) medical benefit ratio (the amount of premiums used to pay patient medical costs) was 87.2% in the first quarter, up from 87.0% year over year. The rise was largely boosted by higher medical costs, notably in Iowa, which surpassed the bearing of premium-rate adjustments and higher membership in the Medicaid business, which transmits a higher benefit expense ratio than the company average.
Anthem (ANTM) also said that higher medical cost in the individual business added to costs.