Benzinga | Oct 20, 2021 06:46AM EDT

Anthem Q3 Earnings Beat Estimates, Raises FY21 EPS Outlook

* Anthem Inc (NYSE:ANTM) has reported Q3 adjusted earnings of $6.79 per share, beating the consensus of $6.39.

* Operating revenue rose 16% to $35.5 billion, slightly topping expectations of $35.3 billion, driven by higher premium revenue due to growth in Medicaid and Medicare and pharmacy product revenue related to IngenioRx.

* The benefit expense ratio was 87.7%, an increase of 90 basis points Y/Y, and a decrease of 50 basis points after adjusting for the repeal of the health insurance tax in 2021.

* Operating cash flow was $2.5 billion, or 1.7 times net income, an increase of $3.7 billion when compared year-over-year.

* Medical enrollment increased 5.7% Y/Y to 45.1 million members. Government Business enrollment increased by 2.3 million lives, primarily driven by organic growth in the Medicaid business.

* FY21 Outlook: Anthem expects an adjusted EPS of more than $25.85, compared to the prior outlook of over $25.50 and the consensus of $25.65.

* It anticipates operating cash flow to be greater than $6.0 billion vs. over $5.8 billion expected earlier.

* Price Action: ANTM shares closed 1.43% higher at $393.75 on Tuesday.