Shares of Anthem Inc.
ANTM,
were indicated down nearly 1% in premarket trading Wednesday, after the health benefits company reported fourth-quarter profit that just topped expectations and revenue that rose above forecasts, while the full-year outlook was less than upbeat. Net income fell to $551 million, or $2.19 a share, from $934 million, or $3.62 a share, in the year-ago period. Excluding non-recurring items, adjusted earnings per share came to $2.54, above the FactSet consensus of $2.53. Revenue grew 16.2% to $31.53 billion, beating the FactSet consensus of $30.90 billion, as premiums revenue increased 12.8% to $27.11 billion to top expectations of $26.39 billion, amid growth in Medicaid and Medicare. Medical enrollment totaled 42.9 million as of Dec. 31, up 4.7% from a year ago. Separately, the company, which repurchased $1.4 billion worth of its stock during the fourth quarter, authorized a $5.0 billion increase to its repurchase program. The stock has gained 4.6% over the past three months through Tuesday, while the S&P 500
SPX,
has advanced 13.5%.