Elevance Health Inc (NYSE:ELV) stock fell 1.02% (As on October 19, 11:29:15 AM UTC-4, Source: Google Finance) after the company posted mixed result for the third quarter of FY 23. The quarterly results benefited on the back of improved premium revenues in the Health Benefits business, higher growth in external pharmacy members served and the buyout of BioPlus. However, the upside was partly offset by an elevated expense level. As of Sep 30, 2023, Elevance Health’s medical membership was around 47.3 million, which inched up 0.1% year over year in the third quarter. The improvement can be attributed to a growing customer base across BlueCard, Affordable Care Act health plan and Medicare Advantage businesses. Yet, the reported figure fell short of the Zacks Consensus Estimate of 47.8 million and our estimate of 47.4 million.

Moreover, Premiums of $35.3 billion advanced 4.6% year over year in the quarter under review, higher than our estimate of $34.3 billion. Product revenues climbed 30.3% year over year to $5.2 billion, which beat the consensus mark of $4.8 billion. Net investment income of $493 million improved 32.9% year over year and outpaced the estimate of $402 million. The total operating margin deteriorated 160 bps year over year at 4.1% in the third quarter.

ELV in the third quarter of FY 23 has reported the adjusted earnings per share of $8.99, beating the analysts’ estimates for the adjusted earnings per share by 6.4%, according to the Zacks Consensus Estimate. The company had reported the adjusted revenue growth of 7.2 percent to $42.48 billion in the third quarter of FY 23, missing the analysts’ estimates for revenue of $42.53 billion. Health Benefits segment reported operating revenues of $36.7 billion in the third quarter, which rose 4.8% year over year and surpassed the estimate of $35.6 billion. Carelon Operating revenues of the segment improved 14.3% year over year to $11.9 billion, higher than the estimate of $10.8 billion. The unit’s operating gain inched up 1.4% year over year to $650 million in the third quarter on the back of consistent growth in its post-acute care services business, the BioPlus acquisition and the solid performance of its Behavioral Health business. However, the metric missed the Zacks Consensus Estimate of $683 million as well as the estimate of $698.3 million. Elevance Health exited the third quarter with cash and cash equivalents of $10.9 billion, which soared 47.8% from the 2022-end level.