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LONDON, UK / ACCESSWIRE / May 11, 2018 / If you want access to our free earnings report on Anthem, Inc. (NYSE: ANTM), all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=ANTM. Anthem reported its first quarter fiscal 2018 operating and financial results on April 25, 2018. United States' second-largest health insurer exceeded market expectations. Additionally, the Company provided guidance for FY18. Register today and get access to over 1,000 Free Research Reports by joining our site below:

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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Anthem most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:

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Earnings Highlights and Summary

Anthem's operating revenue was $22.34 billion in Q1 2018, marginally higher than the $22.32 billion reported in Q1 2017. The results reflected premium rate increases to cover overall cost trends across the Company's business as well as the return of the health insurance tax in 2018. The Company's reported numbers lagged behind analysts' estimates of $22.53 billion.

For Q1 2018, Anthem's net income was $1.31 billion, or $4.99 per diluted share, compared to $1.01 billion, or $3.73 per diluted share, in Q1 2017. The Company's earnings trumped Wall Street's estimates of $4.83 per share.

Operating Results

Anthem's Medical enrollment totaled approximately 39.6 million members at March 31, 2018, reflecting a drop of 1.0 million members, or 2.5%, from 40.6 million at March 31, 2017. The enrollment decrease was driven predominantly by a reduced footprint in the Individual ACA-compliant marketplace. Medicaid enrollment declined by 120,000 individuals while Medicare grew by 237,000 lives.

Anthem's benefit expense ratio was 81.5% in Q1 2018, a decrease of 220 basis points from 83.7% in Q1 2017, primarily driven by the return of the health insurance tax in 2018 and improved medical cost performance across the Company's business segments. Anthem's medical claims reserves established at December 31, 2017 developed moderately better than the Company's expectation during the first quarter of 2018.

Anthem's Days in Claims Payable (DCP) was 40.3 days as of March 31, 2018, an increase of 0.9 days from 39.4 days as of December 31, 2017.

In Q1 2018, Anthem's SG&A expense ratio was 15.3%, reflecting an increase of 100 basis points from 14.3% in Q1 2017. The increase, as expected, was primarily driven by the return of the health insurance tax in 2018 as well as the impact of increased investment spend in 2018 to support growth initiatives.

Anthem's Segment Results

During Q1 2018, the operating gain in the Commercial & Specialty Business segment totaled $1.41 billion, representing growth of 8.1%, from $1.30 billion in Q1 2017. The increase was primarily driven by the Penn Treaty assessments that were recorded in the reported quarter and improved medical cost performance.

For Q1 2018, the operating gain in the Government Business segment was $490.9 million, reflecting an increase of $172.3 million, or 54.1%, from $318.6 million in Q1 2017. The increase reflected the impact of the HealthSun and America's 1st Choice acquisitions as well as organic membership increases in the Medicare business, and retroactive revenue adjustments in the Medicaid business.

Cash Matters

Anthem's operating cash flow was $2.2 billion, or 1.7 times net income, in Q1 2018. For Q1 2017, the Company's operating cash flow was $2.7 billion, or 2.7 times net income. As of March 31, 2018, cash and investments at the parent company totaled approximately $1.1 billion.

During Q1 2018, Anthem repurchased 1.7 million shares of its common stock for $395 million, or a weighted-average price of $233.51. As of March 31, 2018, the Company had approximately $6.8 billion of Board-approved share repurchase authorization remaining.

On April 24, 2018, Anthem's Audit Committee declared a Q2 2018 dividend to shareholders of $0.75 per share. The Q2 2018 dividend is payable on June 25, 2018, to shareholders of record at the close of business on June 08, 2018.

Outlook

For full year 2018, Anthem's operating revenue is forecasting to be in the range of $91.0 billion - $92.0 billion. The Company's benefit expense ratio is now expected to be in the range of 84.4% plus or minus 30 basis points, and SG&A ratio is now expected to be in the range of 15.4% plus or minus 30 basis points.

For FY18, Anthem is estimating medical membership to be in the range of 40.10 million to 40.30 million. The Company's fully-insured membership is expected to be in the band of 14.80 million ? 14.90 million and self-funded membership is now expected to be in the range of 25.30 million ? 25.40 million

For FY18, Anthem is forecasting net income to be greater than $14.12 per share, including approximately $1.18 per share of net unfavorable items. Excluding these items, the Company's adjusted net income is now estimating to be greater than $15.30 per share.

The Company is projecting operating cash flow is expected to be greater than $4.0 billion.

Stock Performance Snapshot

May 10, 2018 - At Thursday's closing bell, Anthem's stock climbed 1.76%, ending the trading session at $225.67.

Volume traded for the day: 1.29 million shares.

Stock performance in the last month ? up 2.43%; previous six-month period ? up 3.77%; past twelve-month period ? up 25.28%; and year-to-date ? up 0.29%

After yesterday's close, Anthem's market cap was at $57.73 billion.

Price to Earnings (P/E) ratio was at 19.77.

The stock has a dividend yield of 1.33%.

The stock is part of the Healthcare sector, categorized under the Health Care Plans industry. This sector was up 0.9% at the end of the session.

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