These 5 Companies Upped Guidance Despite Global Economic Headwinds

4. Elevance Health Inc. (NYSE:ELV)

Market Cap as of July 21: $109.883 billion

Through its subsidiaries, Elevance Health Inc. (NYSE:ELV) provides medical, digital, pharmacy, behavioural, clinical, and care solutions. The company has approximately 118 million customers and employs more than 98,000 people. Elevance Health Inc. (NYSE:ELV) was known as Anthem Inc. till June 2022.

For the financial quarter ending June 30, Elevance Health Inc. (NYSE:ELV) reported an adjusted EPS of $8.04, compared to the estimated $7.74. The revenues were $38.48 billion, outperforming the estimates by $429.21 million. The operating cash flow of the company was recorded at $2.5 billion, surging by $769 million from the prior-year quarter. Medical enrollment increased to 47.1 million members, representing a 6.1% YoY growth. Furthermore, the company announced a dividend of $1.28 for Q3 2022 to be paid out by September 23 to the shareholders of record on September 9.

Elevance Health Inc. (NYSE:ELV) raised its guidance for FY 2022 adjusted EPS to $28.70 compared to the previous guidance of $28.40.

Here is what Baron Funds said about Elevance Health Inc. (NYSE:ELV) in its Q1 2022 investor letter:

“We initiated a position in Anthem, Inc. (NYSE:ANTM) (which recently announced plans to change its name to Elevance Health), one of the largest health benefits companies in the U.S. in terms of medical membership, serving more than 45 million medical members through its affiliated health plans. Anthem serves its members through the Blue Cross and Blue Shield brand name. Similar to many managed care peers, Anthem generates its revenue from the U.S. (which avoids risks related to foreign country exposure) and has pricing power (which enables it to more than offset inflation). More specific to Anthem, the company has multiple growth drivers, including its Medicare Advantage business, its in-house pharmacy benefit management business, and its Diversified Business Group, which includes behavioral health, advanced analytics, and complex and chronic care services. Over the long term, management targets 12% to 15% annual EPS growth. We think Anthem is a high-quality growth company trading at a reasonable valuation.”