Investor Alert

Jan. 26, 2022, 6:14 a.m. EST

Anthem's stock set to fall after profit and revenue beat expectations but premiums comes up shy

Shares of Anthem Inc. were indicated down more than 2% in premarket trading Wednesday, after the health insurer reported fourth-quarter profit and revenue that rose above expectations while premiums missed, and provided a somewhat downbeat full-year outlook. Net income more than doubled to $1.13 billion, or $4.63 a share, from $551 million, or $2.19 a share, in the year-ago period. Excluding nonrecurring items, adjusted earnings per share came to $5.14, above the FactSet consensus of $5.11. Total revenue increased 14.9% to $36.58 billion, beating the FactSet consensus of $36.50 billion, while premiums grew 13.5% to $30.77 billion to miss expectations of $31.01 billion. Total medical membership was 45.37 million as of Dec. 31, up 5.7% from a year ago. Looking ahead, the company said it expects 2022 adjusted EPS of "greater than" $28.25, compared with the FactSet consensus of $28.59. Separately, the company increased its quarterly dividend to $1.28 a share from $1.13 a share, with the new dividend payable March 25 to shareholders of record on March 10. The stock has edged up 0.7% over the past three months while the S&P 500 (S&P:SPX) has lost 4.8%.

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