Anthem Inc (NYSE:ANTM) reported second-quarter earnings that beat analysts' forecasts and revenue that topped expectations. EPS of $7.03 on revenue of $33.3 billion, surpassing the consensus estimates of $6.33 on sales of $33.2 billion.

• Financials: Revenue increased 14.1% Y/Y and 15.8% after adjusting for the repeal of the health insurance tax in 2021, driven by higher premium revenue due to growth in Medicaid and Medicare and pharmacy product revenue growth.
• The benefit expense ratio was 86.8%, an increase of 890 basis points Y/Y, and a rise of 750 basis points after adjusting for the repeal of the health insurance tax in 2021. 
• The increase was driven by increased non-COVID and COVID-related healthcare costs.
• Operating cash flow was $1.7 billion, or 0.9 times net income, a decrease of $3.8 billion when compared year-over-year. 
• Medical enrollment increased 4.4% Y/Y to 44.3 million members. Government Business enrollment increased by 2.1 million lives, driven by Medicaid, reflecting organic growth.
• FY21 Outlook: The Company expects an adjusted EPS of more than $25.50, compared to the prior outlook of over $25.10 and the consensus of $25.20.
• Medical membership is expected to be 44.8 - 45.3 million, Risk-based membership of 19.3 - 19.6 million, and Fee-based membership of 25.5 - 25.7 million.
• The Company sees operating revenue of approximately $137.1 billion, better than the consensus of $135.03 billion. It includes premium revenue of $116.5 billion - $117.5 billion.
• Price Action: ANTM shares closed at $389.94 on Tuesday.