Investing.com -- Elevance Health Inc. reported fourth quarter earnings that missed analyst expectations, but the health insurer's shares rose following the release.
The company posted adjusted earnings per share of $3.84 for Q4 2024, falling short of the $3.98 consensus estimate. Revenue came in at $45 billion, slightly above the $44.9 billion analysts had projected and up 6% year-over-year.
For the full year 2024, Elevance Health reported adjusted EPS of $33.04 on revenue of $175.2 billion, representing a 2.9% increase from 2023.
Looking ahead, the company forecast 2025 adjusted EPS in the range of $34.15 to $34.85, compared to the $34.86 Wall Street consensus. Elevance Health expects high single to low double digit revenue growth for 2025.
The insurer's medical loss ratio, which measures medical costs as a percentage of premiums, rose to 92.4% in Q4 from 89.2% a year earlier. This increase was primarily driven by higher Medicaid medical cost trends.
"Our fourth quarter results demonstrate tangible progress in improving our operations in response to the dynamic environment facing the industry," said CEO Gail K. Boudreaux.
Elevance Health's shares were up 6.7% following the earnings release.
The company ended 2024 with 45.7 million medical members, down 2% year-over-year due to Medicaid membership attrition.