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$ANTM, which entered into an agreement to acquire $CI last year, said that 2016 GAAP EPS is expected to be greater than $9.65. The company did not repurchase any shares in 1Q16 and it has planned to resume the capital deployment program subject to market conditions albeit at a lower level. $ANTM expects to close the Cigna deal in 2H16.
$ANTM completed the acquisition of Florida-based HealthSun, that provides managed healthcare plans. Financial terms of the deal remained undisclosed. With the addition of HealthSun, $ANTM's affiliated Medicare and Medicaid plans now serve more than 650,000 consumers in Florida. This deal is expected to be slightly accretive to earnings in 2018.
$CVS entered into a five-year agreement with $ANTM during 3Q17. Based on this, $CVS will offer its services to support $ANTM's new pharmacy benefit management company called IngenioRx, effective January 2020. The services include claims processing and prescription fulfillment through mail order and specialty pharmacies.
$ANTM's local affiliate has entered into a build-to-suit agreement with Portman Holdings for the custom development of about 352,000 square-foot building located in the heart of Midtown Atlanta, which is already home to Anthem’s Innovation Studio. Construction is planned to begin in January 2018 with an expected completion in two years.
$ANTM has entered into an agreement to acquire HealthSun, an integrated Medicare Advantage health plans and healthcare delivery networks in Florida. Financial terms of the transaction, which is expected to close by 2017-end, were not disclosed. The transaction is expected to be slightly accretive to Anthem's earnings in 2018.
$ANTM, a health benefits company, has announced Tomas Orozco as President of its Medicare east region. He will oversee Anthem’s Medicare operations in Connecticut, Florida, Maine, New Hampshire, New Jersey, New York, and Virginia. Orozco was President of Simply Healthcare’s Medicare business in Florida.
$ANTM said that the Appeals Court verdict can go in three directions with regards to the pending $CI transaction; a) deny the company's appeal, b) accept, but in part and c) accept its appeal in its entirety. After the court's decision, the company will make the best choice. $ANTM added that it is committed to close the acquisition.
$ANTM predicts 2017 medical membership of 40.2-40.4MM, fully insured membership of 15.2-15.3MM and self-funded membership of 25-25.1MM. The company sees benefit expense ratio of 87% plus or minus 30 basis points, SG&A ratio of 13.6% plus or minus 30 basis points, and operating cash flow to be greater than $3.5Bil.
$ANTM's Audit Committee declared a 2Q17 dividend on April 25, 2017 of $0.65 per share. On an annualized basis, this equates to a dividend of $2.60 per share. The dividend is payable on June 23, 2017 to shareholders of record on June 9, 2017.
$ANTM's operating revenue for 1Q17 increased by 9.9% to $22.3Bil from last year. The growth reflected premium rate increases to cover overall cost across its businesses. Additionally, the increase was driven by higher enrollment in the Medicaid, Medicare, and Local Group insured and self-funded businesses.
$ANTM's medical enrollment totaled about 40.6MM members at March 31, 2017, an increase of 2.6% from 39.6MM at March 31, 2016. Commercial & Specialty Business enrollment increased by 471,000 medical members. Enrollment also grew by 507,000 in the Medicaid business and 53,000 in the Medicare business.
$ANTM reported a 43.7% jump in 1Q17 earnings driven by higher revenue as well as continued momentum across its businesses. Net income rose to $1.01Bil or $3.73 per share from $703MM or $2.63 per share last year. Revenue grew 11% to $22.53Bil. Adjusted EPS increased to $4.68 from $3.46.