Anthem Q2 Profit Beats Expectations

reported stronger-than-expected earnings for the second quarter on Wednesday. The Indianapolis, Indiana-based company posted quarterly net income of $859.1 million, or $3.13 per share, compared to $731.1 million, or $2.56 per share, in the year-ago quarter. Excluding one-time items, the company's earnings jumped to $3.10 per share from $2.56 per share. Its total revenue surged 8.3 percent to $20.02 billion, while operating revenue surged 8.4 percent to around $19.8 billion. Analysts were expecting a profit of $2.75 per share on revenue of $19.63 billion. Operating gain in the Commercial & Specialty Business segment slipped 0.8 percent year-over-year to $912.0 million in the second quarter, while operating gain in the Government Business segment rose 94.5 percent to $609.7 million from $313.5 million. The benefit expense ratio narrowed to 82.1 percent in the quarter, compared to 82.7 percent in the year-ago quarter. At June 30, 2015, medical enrollment totaled around 38.5 million members, versus 37.3 million at June 30, 2014. During the second quarter, Anthem repurchased around 4.0 million shares of its common stock for about $637 million. During the second quarter, Anthem paid a quarterly dividend of $0.625 per share. "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," said Joseph Swedish, president and chief executive officer. For full year 2015, the company projects adjusted net income to be greater than $10.00 per share on operating revenue of around $78.0 billion. Anthem shares rose 1.78 percent to close at $154.20 yesterday.