Insurer Anthem underwhelms Street with 2022 forecast

Jan 26, 2022, 6:20 AM | Updated: 9:10 am

Anthem is starting 2022 with lower expectations than Wall Street for how the year will play out.

The Blue Cross-Blue Shield health insurer laid out on Wednesday earnings, revenue and enrollment projections that all fell short of average analyst expectations, and its stock slipped while broader indexes rallied.

The health insurer expects enrollment to grow, especially in Medicare Advantage, the privately run version of the federal government’s coverage program. But it also anticipates some increased costs at least initially as the new customers start using their coverage.

Anthem said it expects this year that adjusted earnings will be greater than $28.25 per share on $152 billion in operating revenue, which excludes investment income.

The insurer also sees total enrollment ending up at somewhere between 45.6 million and 46.2 million people for the year after ending 2021 with about 45.4 million.

For next year, analysts expect, on average, earnings of $28.59 per share on $153 billion in revenue, with enrollment totaling about 46.8 million people, according to FactSet.

Most of Anthem’s customers have plans they bought on the individual insurance market or through employers. But the company’s government business, which includes Medicare Advantage and Medicaid programs it manages for states, grew 17% to more than 15 million people in 2021.

In the fourth quarter, Anthem also missed the consensus expectation by about $500 million with operating revenue of $36.02 billion.

The insurer’s adjusted earnings of $5.14 per share in the quarter, beat expectations by 3 cents while Anthem’s profit doubled to $1.14 billion.

For the full year, Anthem earned $6.1 billion on $136.94 billion in operating revenue.

Shares of Indianapolis-based Anthem Inc. fell more than 1%, or $6.17, to $433.01 Wednesday morning while the S&P 500 index advanced more than 1%.

Anthem shares have climbed about 40% over the past year.

Copyright © The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.


FILE - People visit a makeshift memorial honoring the victims of the Oct. 1, 2017, mass shooting in...
Associated Press

Vegas survivors signal hope even as mass shootings persist

LAS VEGAS (AP) — It’s been five years since carnage and death sent his family running into the night, leaving them separated and terrified as a gunman rained bullets into an outdoor country music festival crowd on the Las Vegas Strip. The memories don’t fade, they sharpen, William “Bill” Henning said as he prepared for […]
14 hours ago
Associated Press

Man shot several times at California youth football game

ONTARIO, Calif. (AP) — A man was shot several times on the field at a youth football game Saturday morning in Southern California, police said. Ontario police said the man was targeted and shot multiple times by suspects who fled. No one else was injured at the game at Colony High School, and there was […]
14 hours ago
In this image from video broadcast by RTB state television, coup spokesman Capt. Kiswendsida Farouk...
Associated Press

Protesters attack French Embassy in Burkina Faso after coup

OUAGADOUGOU, Burkina Faso (AP) — Angry protesters attacked the French Embassy in Burkina Faso’s capital Saturday after supporters of the West African nation’s new coup leader accused France of harboring the ousted interim president, a charge French authorities vehemently denied. A group of soldiers appearing on state television late Friday had announced that Lt. Col. […]
14 hours ago
From left, A.J. McCullough of Sunset Beach, NC, mother of bride Monroe McCullough, an unidentified ...
Associated Press

Despite Ian’s punch, wedding day saved on wet Pawleys Island

PAWLEYS ISLAND, S.C. (AP) — Saturday turned out to be a sparklingly beautiful fall day in Pawleys Island, an idyllic wedding venue sandwiched between the Atlantic oceanfront and expansive marshland that typify South Carolina’s coastal beauty. For two visiting families, the perfect wedding almost got derailed by Hurricane Ian’s landfall and aftermath. Mary Lord and […]
14 hours ago
FILE - Democratic candidate for Georgia governor Stacey Abrams poses for a portrait in front of the...
Associated Press

GOP attacks Georgia’s Abrams on voting as judge rejects suit

ATLANTA (AP) — When Democrat Stacey Abrams narrowly lost the Georgia governor’s race to Republican Brian Kemp four years ago, she didn’t go quietly. She ended her campaign with a nonconcession that acknowledged she wouldn’t be governor, while spotlighting her claims that Kemp had used his post as secretary of state to improperly purge likely […]
14 hours ago
This is an aerial view of a damaged trailer park after Hurricane Ian passed by the area Saturday, O...
Associated Press

Ian leaves dozens dead as focus turns to rescue, recovery

FORT MYERS, Fla. (AP) — With a death toll nearing three dozen, rescuers searched on Saturday for survivors among the Florida homes ruined by Hurricane Ian, while authorities and stunned residents in South Carolina began surveying their losses and assessing the damage from the powerful storm’s strike there. Ian, one of the strongest hurricanes ever […]
14 hours ago

Sponsored Articles

Day & Night Air Conditioning, Heating and Plumbing

Here are 4 signs the HVAC unit needs to be replaced

Pool renovations and kitchen upgrades may seem enticing, but at the forefront of these investments arguably should be what residents use the most. In a state where summertime is sweltering, access to a functioning HVAC unit can be critical.
Sanderson Ford

Don’t let rising fuel prices stop you from traveling Arizona this summer

There's no better time to get out on the open road and see what the beautiful state of Arizona has to offer. But if the cost of gas is putting a cloud over your summer vacation plans, let Sanderson Ford help with their wide-range selection of electric vehicles.
(Courtesy Condor)...
Condor Airlines

Condor Airlines shows passion for destinations from Sky Harbor with new-look aircraft

Condor Airlines brings passion to each flight and connects people to their dream destinations throughout the world.
Insurer Anthem underwhelms Street with 2022 forecast