Anthem Inc. (ANTM, Financial), a major health benefits company, said fourth-quarter operating revenues increased 4.5% year over year, capping a strong finish to fiscal 2017.
The Indianapolis-based company reported $22.4 billion in revenue for the quarter, outperforming analyst expectations by approximately $0.26 billion.
Company accelerates revenue growth across its business segments
Anthem CEO Gail Boudreaux said that “improved execution in all areas of [the company’s] business” led to strong performance for the year, highlighted by a 5.8% year-over-year increase in full-year operating revenues. The company enrolled approximately 325,000 new members during the year, with approximately 278,000 net enrollments in the Commercial and Specialty business and approximately 47,000 in the Government business.
Commercial and Specialty operating revenues increased 4.9% while Government operating revenues increased 4.0%. Revenues increased primarily due to higher enrollment in Medicare, Local Group insured and self-funded businesses.
Company raises guidance for fiscal 2018 and increases dividend
Boudreaux said that moving forward, Anthem will continue to “provide high quality health care solutions” to the 40.2 million consumers the company “is privileged to serve.” For the year, Anthem expects adjusted net earnings to reach $15 per share, reflecting a 24% increase from adjusted net earnings of $12.04 per share from the prior year.
The company announced a dividend of 75 cents for the first quarter, up five cents from the previous dividend.
Anthem’s share price rebounded from its 5.72% decline on Jan. 30, the day Warren Buffett (Trades, Portfolio)’s Berkshire Hathaway Inc. (BRK.A, Financial)(BRK.B, Financial) teamed up with Amazon.com Inc. (AMZN, Financial) and JPMorgan Chase & Co. (JPM, Financial) to cut health care costs and improve services for U.S. employees. Anthem’s stock price increased 2.41% from its previous close of $243.44.
Disclosure: No positions in the stocks mentioned.
