Health and Healthcare

Anthem Posts Strong Second Quarter Beat

145922793
Source: Thinkstock
Anthem, Inc. (NYSE: ANTM) reported its second-quarter financial results Wednesday before the markets opened. The company had $3.10 in earnings per share (EPS) on $19.76 billion in revenue compared to Thomson Reuters consensus estimates of $2.75 in EPS on $19.63 billion in revenue. The same period from the previous year had $2.44 in EPS on $18.23 billion in revenue.

The company gave guidance for the 2015 full year. It expects EPS to be $10.00 and that operating revenue will be $78.0 billion. There are consensus estimates of $10.10 in EPS on $78.15 billion in revenue.

For the third quarter, Anthem declared a dividend to shareholders of $0.625 per share, which is $2.50 on an annualized basis. The company had previously paid that same dividend in the second quarter.

During the second quarter, Anthem repurchased roughly 4.0 million shares of its common stock for nearly $637 million. At this time the company has $4.3 billion remaining in its share repurchase authorization.

Wayne DeVeydt, executive vice president and CFO of Anthem, said:

Second quarter results reflect continued execution across our businesses. During the quarter, we repurchased 4.0 million shares and distributed $163.9 million to shareholders in dividends while continuing to invest in our strategic pillars of provider collaboration, total cost of care management and consumer centricity to benefit our ability to serve members.

Joseph Swedish, President and CEO of Anthem, commented on earnings:

We are pleased to report solid second quarter 2015 results as we make progress towards driving greater health care access, affordability and choice. Second quarter results reflect contributions from both our Commercial and Government businesses and we believe the growing diversity of our business model better serves our customers.

At the end of the second quarter, the company had $1.55 billion in cash and cash equivalents compared to $2.15 billion at the end of December 2014.

Shares of Anthem closed Tuesday up 1.8% at $154.20 on a 52-week trading range of $106.52 to $173.59. In early trading indications, shares were up 3.1% at $159.00. The stock has a consensus analyst price target of $181.31.

ALSO READ: The 10 Jobs With the Best Job Security

Take This Retirement Quiz To Get Matched With An Advisor Now (Sponsored)

Are you ready for retirement? Planning for retirement can be overwhelming, that’s why it could be a good idea to speak to a fiduciary financial advisor about your goals today.

Start by taking this retirement quiz right here from SmartAsset that will match you with up to 3 financial advisors that serve your area and beyond in 5 minutes. Smart Asset is now matching over 50,000 people a month.

Click here now to get started.

Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.