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 This material may not be published, broadcast, rewritten or redistributed.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 - A sign at the federal courthouse in Tacoma, Wash., is shown on April 6, 2016, to inform visi...
Associated Press

COVID’s lingering impact prompts Real ID deadline extension

The deadline for obtaining the Real ID needed to board a domestic flight has been pushed back again, with the Department of Homeland Security citing the lingering impact of the COVID-19 pandemic for the slower-than-expected rollout. The deadline to have a Real ID had been May 3, 2023, but DHS announced Monday that it was […]
17 hours ago
Attorney General Merrick Garland speaks at a news conference about a jury's verdict against members...
Associated Press

Garland: Justice Dept.’s civil rights work is key priority

WASHINGTON (AP) — The early work of the Justice Department’s civil rights division meant confronting white supremacists who were intimidating Black voters, and 65 years later, its work is just as urgent amid a surge of hate crimes in the U.S., Attorney General Merrick Garland said Tuesday. “Now more than ever, protecting civil rights is […]
17 hours ago
Associated Press

Mississippi grain company’s ex-CEO indicted on fraud charges

GREENVILLE, Miss. (AP) — The former leader of a Mississippi grain storage and processing company has been indicted on federal and state charges, more than a year after the company filed for bankruptcy, prosecutors said Tuesday. John R. Coleman, 46, of Greenwood, Mississippi, is the former CEO of Express Grain Terminals, LLC. A federal grand […]
17 hours ago
FILE - In this photo released by the Saudi Royal Palace, Saudi Crown Prince Mohammed bin Salman, ri...
Associated Press

US court dismisses suit against Saudi prince in killing

WASHINGTON (AP) — A U.S. federal judge on Tuesday dismissed a lawsuit against Saudi Crown Prince Mohammed bin Salman in the killing of U.S.-based journalist Jamal Khashoggi, bowing to the Biden administration’s insistence that the prince was legally immune in the case. District of Columbia U.S. District Judge John D. Bates heeded the U.S. government’s […]
17 hours ago
A burned-out warehouse is seen, Tuesday, Dec. 6, 2022, in Baltimore. A man was found dead inside th...
Associated Press

Body of Baltimore fire victim went undiscovered for hours

BALTIMORE (AP) — Several hours after firefighters extinguished a warehouse fire in southwest Baltimore early Sunday, the scene was eerily quiet as Donte Craig stepped through the charred rubble, trying to remain hopeful. He was looking for his older brother James Craig Jr., who leased the warehouse for his demolition and hauling business. After hearing […]
17 hours ago
Associated Press

Judge reduces award for flight attendant who sued Southwest

DALLAS (AP) — A federal judge cut a flight attendant’s $5.1 million jury award to about $800,000 but ordered Southwest Airlines to rehire the woman, who had claimed that the airline and her union conspired to fire her for expressing opposition to abortion. U.S. District Judge Brantley Starr said in a ruling issued Monday that […]
17 hours ago

Sponsored Articles

Quantum Fiber

How high-speed fiber internet can improve everyday life

Quantum Fiber supplies unlimited data with speeds up to 940 mbps, enough to share 4K videos with coworkers 20 times faster than a cable.
Children’s Cancer Network

Children’s Cancer Network celebrates cancer-fighting superheroes, raises funds during September’s Childhood Cancer Awareness Month

Jace Hyduchak was like most other kids in his kindergarten class: He loved to play basketball, dress up like his favorite superheroes and jump as high as his pint-sized body would take him on his backyard trampoline.
Day & Night Air Conditioning, Heating and Plumbing

Ways to prevent clogged drains and what to do if you’re too late

While there are a variety of ways to prevent clogged drains, it's equally as important to know what to do when you're already too late.
Insurer Anthem underwhelms Street with 2022 forecast