Health and Healthcare

Anthem Affirms Guidance

Jon C. Ogg

Published: November 20, 2015 11:05 am

Last Updated: January 13, 2020 4:56 pm

Anthem Inc. (NYSE: ANTM) is trying to convey the message that the problems of UnitedHealth Group Inc. (NYSE: UNH) are not its problem. At least that is what the company’s guidance suggests.

The operator of the Blue Cross Blue Shield network made a filing with the U.S. Securities and Exchange Commission (SEC) on Friday morning. The filing signaled that Anthem’s corporate officers are expected to speak with securities analysts and investors at upcoming conferences. The dates that the conferences will be taking place were between December 2 and December 7, 2015.

Some may wonder why the insurance giant issued this release this far ahead, but the logic is simple (and sound). UnitedHealth’s shares took a big hit on Thursday with its earnings warning and threat to leave the individual insurance exchanges. Thursday’s drop took UnitedHealth’s shares down 5.6% to $110.63. Anthem did not want that weakness to persist and for analysts and investors to sit around speculating whether its numbers would be the same, better or worse.

Anthem’s filing showed that the company continues to expect GAAP net income for 2015 to be in the range of $9.53 to $9.63 per share, including approximately $0.57 per share of net unfavorable items. Excluding items, Anthem continues to expect its adjusted net income to be in the range of $10.10 to $10.20 per share.

The filing further distanced itself from UnitedHealth’s notes that developments in recent weeks were adverse. Anthem’s filing said:

In October, the Company’s commercial individual business tracked expectations, supporting this outlook. This guidance does not include any adjustments beyond those reported in the Company’s third quarter 2015 earnings release.

Anthem shares were last seen up 2.2% at $130.62 Friday, versus a 52-week range of $121.22 to $173.59 and versus a consensus analyst price target of $178.50.

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