Anthem Inc. (NYSE: ANTM) released its most recent earnings report before the markets opened on Wednesday. The company posted $1.76 in earnings per share (EPS) and $21.71 billion in revenue, versus consensus estimates from Thomson Reuters of $1.61 in EPS and revenue of $20.92 billion. In the fourth quarter of last year, it posted EPS of $1.14 and $20.02 billion in revenue.
Medical enrollment totaled roughly 39.9 million members at the end of 2016, an increase of 1.3 million members, or 3.4%, from 2015. However, medical enrollment was relatively flat sequentially during the fourth quarter. Enrollment increases in the Medicaid and Local Group businesses were largely offset by declines in the Individual and National businesses.
In terms of guidance for 2017, the company expects to see EPS upward of $11.50, with operating revenue in the range of $86.5 billion to $87.5 billion. The consensus estimates are calling for $11.53 in EPS and $86.68 billion in revenue for the coming year.
The company did not repurchase any shares of its common stock during the fourth quarter of 2016 due to the pending acquisition of Cigna, despite having nearly $4.2 billion in share repurchase authorization remaining.
Operating cash flow was $275 million during the quarter. On the books, Anthem cash, cash equivalents and investments totaled $22.71 billion at the end of the quarter, up from $20.48 billion at the end of the previous year.
Joseph Swedish, president and CEO of Anthem, commented:
Our fourth quarter 2016 core earnings and financial metrics tracked well versus our expectations, reflecting the efforts of all of our associates to improve affordability on behalf of our members. We are well positioned for a successful 2017, building off of improved business momentum in the second half of 2016.
Shares of Anthem hit a new 52-week high of $159.48 early Wednesday. The consensus analyst price target is $162.18, and the 52-week low is $114.85.
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