Exchange: LSE | Sector: Healthcare | Industry: Medical Equipment Services
Q1 2025
Published: Apr 22, 2025
Earnings Highlights
Revenue of $48.89B up 14.8% year-over-year
EPS of $9.61 decreased by 0.1% from previous year
Gross margin of 100.0%
Net income of 2.18B
""We continuously seek to refine our processes to ensure scalable and sustainable growth."" - CEO
Elevance Health Inc (0HG8.L) Q1 2025 Financial Results: Notable Revenue Growth and Strategic Focus on Cost Management
Executive Summary
In the first quarter of 2025, Elevance Health Inc demonstrated a robust financial performance, with total revenue soaring to $48.89 billion, reflecting a significant year-over-year increase of 14.83% and a quarter-over-quarter increase of 7.59%. This growth was primarily driven by the company's strategic initiatives in expanding its service offerings and optimizing operational efficiencies.
Although gross profit margin showed a remarkable increase year-over-year, the net income experienced a slight decline of 2.80%, attributed to higher operational expenses. Management's commentaries emphasized a stringent focus on cost management and enhancing service delivery, which are expected to bolster profitability as the year progresses, making Elevance a potentially strong investment opportunity in the healthcare sector.
Key Performance Indicators
Revenue
48.89B
QoQ: 7.59% | YoY:14.83%
Gross Profit
48.89B
1.00% margin
QoQ: 7.59% | YoY:306.38%
Operating Income
38.61B
QoQ: 6 270.96% | YoY:1 104.99%
Net Income
2.18B
QoQ: 422.25% | YoY:-2.80%
EPS
9.64
QoQ: 423.91% | YoY:-0.10%
Revenue Trend
Margin Analysis
Key Insights
Total Revenue: $48.89 billion (YoY: 14.83%, QoQ: 7.59%)
Margin Ratios:
- Operating Income Ratio: 78.97%
- Net Income Ratio: 4.45%
Balance Sheet Strengths:
- Cash and Short-term Investments: $32.94 billion
- Total Assets: $119.72 billion
- Total Liabilities: $77.09 billion
Cash Flow Insights:
- Free Cash Flow: $821 million
- Net Cash Used for Financing Activities: -$1.91 billion (indicating ongoing debt management and shareholder returns).
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
48.89B
14.83%
7.59%
Gross Profit
48.89B
306.38%
7.59%
Operating Income
38.61B
1 104.99%
6 270.96%
Net Income
2.18B
-2.80%
422.25%
EPS
9.64
-0.10%
423.91%
Key Financial Ratios
operatingProfitMargin
6.42%
netProfitMargin
4.47%
returnOnAssets
1.82%
returnOnEquity
5.14%
debtEquityRatio
0.71
operatingCashFlowPerShare
$4.49
freeCashFlowPerShare
$3.63
dividendPayoutRatio
17.7%
priceToBookRatio
2.3
priceEarningsRatio
11.19
Net Income vs. Revenue
Expense Breakdown
Management Commentary
Strategic Focus: Elevance Health is committed to enhancing operational efficiencies, as highlighted by the management stating, "We continuously seek to refine our processes to ensure scalable and sustainable growth."
Market Conditions: Management noted, "Despite the challenges within the healthcare landscape, our diversified portfolio allows us to navigate uncertainties and meet evolving consumer needs." This supports their focus on providing comprehensive care solutions while maintaining a steady growth outlook.
"We continuously seek to refine our processes to ensure scalable and sustainable growth."
— CEO
"Despite the challenges within the healthcare landscape, our diversified portfolio allows us to navigate uncertainties and meet evolving consumer needs."
— CFO
Forward Guidance
Elevance Health's management has set an optimistic outlook for the remainder of 2025, indicating expectations for continued revenue growth driven by innovative health solutions targeting a changing market landscape. Specific growth targets were mentioned, including aiming for a revenue increase of at least 10% YoY for the next two quarters. Key factors to watch include regulatory changes in healthcare and the competitive landscape as new entrants bring innovations.
Competitive Position
Company
Gross Margin
Operating Margin
Return on Equity
P/E Ratio
0HG8.L Focus
1.00%
6.42%
5.14%
11.19%
0HRS.L
15.20%
3.57%
2.31%
12.01%
0L5N.L
78.90%
14.60%
4.54%
88.23%
0JT5.L
48.00%
30.30%
13.20%
23.65%
0HW4.L
46.40%
24.50%
7.49%
10.61%
Gross Profit Margin
Operating Profit Margin
Return on Equity
P/E Ratio Comparison
Investment Outlook
Overall, Elevance Health Inc presents a compelling investment opportunity due to its solid financial foundation, impressive revenue growth, and management's strategic focus on operational efficiency. Investors should consider monitoring the company’s adaptability to market changes, regulatory shifts, and competition, which will be crucial in assessing future performance.
Key Investment Factors
Growth Potential
Elevance Health's diversified portfolio and strategic innovations in healthcare delivery create a promising growth trajectory, supported by an expanding market.
Profitability Risk
Potential regulatory changes and competitive pressures in the healthcare sector remain significant risks, impacting margins and overall profitability.
Financial Position
Elevance displays a solid financial position with significant cash reserves and manageable debt levels, preparing them well for future investments and economic uncertainties.
SWOT Analysis
Strengths
Strong revenue growth of 14.83% YoY
Efficient cost management enhancing profitability
Diverse service portfolio serving 118 million people
Weaknesses
Net income declined slightly compared to the previous quarter