3Settimana·

Elevance Health Q2 '25 Earnings Highlights

EPS: $8.84 vs $9.07 expected ❌
Revenue: $49.4 billion vs $48.14 billion expected ✅
FY25 EPS guidance: $30.00 vs $34.48 consensus ❌

Benefit cost ratio: 88.9%; increase of +260 basis points compared to the previous year
Operating expense ratio: 10.1 %; decrease of -160 basis points compared to the previous year

The second-largest health insurer reported its profits. Although these were below consensus, they were not too bad given the panic in the industry.

The benefit cost ratio was 88.9%, an increase of 260 basis points from the previous year, reflecting the trend toward higher medical costs, particularly in the Medicaid business and ACA health plans.

CEO Comment:

"In the second quarter, Elevance Health made significant progress in delivering a simple and personalized experience for our customers while advancing our efforts to improve efficiencies across the health system ... With the embedded earnings power of our diversified Health Benefits and Carelon businesses, we remain confident in our ability to deliver at least 12% compound annual growth in adjusted diluted earnings per share over time." - Gail K. Boudreaux

$UNH (+0,13%)
$CNC (+0,59%)
$US60855R1005 (+0,24%)
$CVS (+0,15%)
$OSCR

BamBamInvest

@BamBamInvest

3Settimana·

Further increased

$UNH (+0,13%)

$UNH (+0,13%) has not experienced two consecutive years of negative returns since 1987.

Who is still invested here, who is buying, what are your assessments? 🤔

In my opinion, a lot of negative things are already priced in here.

There is no evidence for the accusations
Every accusation is contradicted and more openness is also suggested
They are regularly reviewed and nothing negative has been found
Bad "old" news is constantly being rehashed which has already been dismissed as unfounded and unproven
CEO and other insiders have set an example by buying it
$UNH (+0,13%) is one of the largest employers in the US and also system relevant
Medicare/Medicaid accounts for only 15% of revenue
Outlook/expectations have already been reduced
Historically high dividend yield of just under 3%
Possible penalties already priced in in my opinion

yes, of course there is still downside potential, but the risk/reward ratio is already very attractive

The entire sector has similar ways of working and a decline/reduction in Medicare could $UNH (+0,13%) as the top dog in the private sector could even play into its hands.

UnitedHealth Group $UNH (+0,13%) has traded at the largest deviation from the S&P 500 price-to-earnings ratio since its IPO ...

This stock has literally NEVER been this cheap relative to the S&P 500.

Incredibly exciting to follow the story.

$CNC (+0,59%)
$CVS (+0,15%)
$OSCR
$HUM (+0,66%)
$CI (+0,24%)
$ELV (+0,64%)
$XDWH (+0,38%)

15.07

UnitedHealth

Acquistato x11 a 251,45 €

2765,95 €

17 Commenti

Iwas M.@SSIT

3Settimana

How many shares are you up to now? There should already be a lot of skin in the game. 😁

EDIT: At UNH, of course.

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BamBamInvest@BamBamInvest

3Settimana

@SSIT 117 😂

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Hu_F_10@Hu_F_10

3Settimana

I'm also invested at around -25%, but have a savings plan running. Let's hope you'll be right 🙏

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BamBamInvest@BamBamInvest

3Settimana

@Hu_F_10 in $UNH or $ELV?

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Hu_F_10@Hu_F_10

3Settimana

$UNH

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BamBamInvest@BamBamInvest

3Settimana

@Hu_F_10 After all, it's an investment, sometimes it just takes time 👍

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Pietro@ASBaracca

3Settimana

Great post, thank you for summarize it! Do you think is a good moment to buy ELV, now that it's cheaper?

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BamBamInvest@BamBamInvest

3Settimana

@ASBaracca I would go with $UNH , but the whole sector is Not really expensive. ✌️

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B. T.@Aktienhauptmeister

3Settimana

I've just done the same 😂
I put off buying for a long time because I wanted to see how it would develop over the weeks. I also think that most of it is already priced in 🧐

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BamBamInvest@BamBamInvest

3Settimana

@Aktienhauptmeister 💪 Let's wait for the earnings, I'm pretty positive. I think $UNH has only missed earnings once since 2008 and since they had already reduced and suspended the guidance, I expect a positive surprise, you can see at $ELV that mainly Medicaid and ACA are affected, the share of sales at $UNH is lower. Above all, if they reflect negatively before the earnings, then it's more likely to be a positive surprise.

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B. T.@Aktienhauptmeister

3Settimana

@BamBamInvest they will report the figures next week if I am not mistaken 🤔 I am also very positive. of course there is downside potential, but the risk/reward ratio is already more than attractive in my opinion

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BamBamInvest@BamBamInvest

3Settimana

@Aktienhauptmeister Tuesday 29.07. still takes a while

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Andi@Andiiiii

3Settimana

I bought yesterday at € 253. I think the share has the potential to generate a hundred percent return in the coming years.

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BamBamInvest@BamBamInvest

3Settimana

@Andiiiii I think 100% is the minimum, I think they will benefit from providers like <security:n/a:US60855R1005> and $CNC, which are too active in the Medicaid and ACA sector. $OSCR will also benefit from this in the long term. Developments in the healthcare sector remain exciting. Politically, there will also have to be an interim solution in the individual states because of the voters, as individual politicians (whether Republicans or Democrats) want to be re-elected. In an extreme gar phase, it doesn't hurt to move into sectors that are more conservative and have not done well so far (even if justified). The time for health insurers will come again sooner or later and a lot of negative things are already priced in. ✌️

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Andi@Andiiiii

2Settimana

@BamBamInvest see it exactly the same way and can only agree.✌️

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GG H.@GGHyperX

3Settimana

I'm curious to see if it will be the same kind of bloodbath at $UNH

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BamBamInvest@BamBamInvest

3Settimana

@GGHyperX I think this is already priced in, especially as they had already suspended and reduced their guidance. In addition, they only have half of Medicaid / ACA % sales of $ELV, you can see that it hardly rubs off. $ELV ~ 25% , United 11-15% share of sales . $UNH has also been hit harder than $ELV. I think it will be better than expected and positive, but we'll see.

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