Anthem Q2 Profit Down, Adj. EPS, Revenues Top View; Lifts FY Revenue View

(RTTNews) - Health benefit company Anthem, Inc. (ANTM) reported Wednesday that its second-quarter 2016 net income declined 9.1 percent to $780.6 million, or $2.91 per share from $859.1 million, or $3.13 per share last year.

The latest results included net negative adjustment items of $0.42 per share. Adjusted net income was $3.33 per share, compared to $3.10 per share in the prior year.

On average, 19 analysts polled by Thomson Reuters expected earnings of $3.23 per share for the quarter. Analysts' estimates typically exclude special items.

Operating revenue increased 7.2 percent to $21.27 billion from last year's $19.76 billion. Analysts were looking for revenues of $20.57 billion for the quarter.

The growth in revenue reflected premium increases.

Medical enrollment has increased by approximately 3 percent, totaling approximately 39.8 million members as of June 30.

Looking ahead, for fiscal 2016, the company expects reported net income to be greater than $9.34 per share, including greater than $1.46 per share of net unfavorable items.

The company expects adjusted net income to be greater than $10.80 per share. Analysts expect earnings of $10.94 per share for the year.

Operating revenue is now expected to in the range of $82.5 billion- $83.5 billion. The previous forecast was $81 billion to $82 billion.

Medical membership is now expected to be in the range of 39,600,000 - 39,800,000.

Further, the company declared a third quarter 2016 dividend to shareholders of $0.65 per share.