Elevance to Report Q2 Earnings: Will Rising Costs Pressure Profits?

Elevance Health, Inc. ELV is set to report its second-quarter 2025 results on July 17, 2025, before the opening bell. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings is currently pegged at $9.20 per share on revenues of $48.13 billion.The second-quarter earnings estimate declined 1.8% over the past 60 days. The bottom-line projection indicates a year-over-year decline of 9.1%. However, the Zacks Consensus Estimate for quarterly revenues implies a year-over-year increase of 11.4%. Image Source: Zacks Investment ResearchFor 2025, the Zacks Consensus Estimate for Elevance’s revenues is pegged at $195 billion, implying a rise of 11.3% year over year. The consensus mark for 2025 EPS is pegged at $34.40, implying a 4.1% year-over-year increase. (See the Zacks Earnings Calendar to stay ahead of market-making news.)Elevance’s earnings beat the consensus estimate in three of the trailing four quarters and missed once, with the average surprise being negative 1.2%. This is depicted in the figure below.Elevance Health, Inc. Price and EPS Surprise Elevance Health, Inc. price-eps-surprise | Elevance Health, Inc. QuoteQ2 Earnings Whispers for ElevanceOur proven model does not conclusively predict an earnings beat for the company this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That is not the case here.ELV has an Earnings ESP of 0.00% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.What’s Shaping Elevance’s Q2 Results?The Zacks Consensus Estimate for product revenues indicates 11.1% growth from the year-ago period’s $5.5 billion. The consensus estimate for premiums indicates an 11.9% increase from the year-ago period. These are likely to have aided revenues in the second quarter.The consensus mark for Commercial Individual membership implies 5.9% growth from a year ago, while our model estimate indicates a 5.6% increase. However, the consensus estimate for Commercial Fee-based memberships indicates a 0.1% year-over-year decline.Meanwhile, the Zacks Consensus Estimate for Carelon brand’s operating income for the second quarter indicates a 14.1% year-over-year increase. Growth in CarelonRx is primarily expected to have aided the brand. The results are likely to have been supported by the recent buyouts in home health and pharmacy services.However, its expenses are likely to have remained elevated in the quarter due to substantial investments in digital capabilities and platforms. High benefit expenses, cost of products sold and interest expenses are likely to have affected profit margins, making earnings beat uncertain. The Zacks Consensus Estimate for the benefit expense ratio is pegged at 88.4, higher than the year-ago level of 86.3. We expect total expenses to jump nearly 11% year over year in the second quarter.The Zacks Consensus Estimate for the Health Benefits segment’s operating income for the second quarter indicates a 12.4% year-over-year decrease. Also, declining memberships in Medicaid are likely to have kept second-quarter premium growth in check.Stocks That Warrant a LookWhile an earnings beat looks uncertain for Elevance, here are some companies from the broader Medical space that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this time around:Boston Scientific Corporation BSX has an Earnings ESP of +0.88% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.The Zacks Consensus Estimate for Boston Scientific’s bottom line for the to-be-reported quarter indicates a 16.1% year-over-year growth. Boston Scientific’s earnings beat estimates in each of the last four quarters, with an average surprise of 8.8%.CVS Health Corporation CVS has an Earnings ESP of +2.06% and a Zacks Rank of 2.The Zacks Consensus Estimate for CVS Health’s bottom line for the to-be-reported quarter is pegged at $1.47. CVS Health’s earnings beat estimates in each of the past four quarters, with an average surprise of 18.1%.Summit Therapeutics Inc. SMMT has an Earnings ESP of +6.25% and a Zacks Rank of 2.The Zacks Consensus Estimate for Summit Therapeutics’ bottom line for the to-be-reported quarter has witnessed one upward estimate revision in the past 60 days with no opposite movement. Summit Therapeutics’ earnings beat estimates in two of the trailing four quarters, met once and missed on the other occasion, with an average surprise of 3.1%.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the favorite stock to gain +100% or more in the months ahead. They includeStock #1: A Disruptive Force with Notable Growth and ResilienceStock #2: Bullish Signs Signaling to Buy the DipStock #3: One of the Most Compelling Investments in the MarketStock #4: Leader In a Red-Hot Industry Poised for GrowthStock #5: Modern Omni-Channel Platform Coiled to SpringMost of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor. While not all picks can be winners, previous recommendations have soared +171%, +209% and +232%.Download Atomic Opportunity: Nuclear Energy's Comeback free today.Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Boston Scientific Corporation (BSX): Free Stock Analysis Report CVS Health Corporation (CVS): Free Stock Analysis Report Summit Therapeutics PLC (SMMT): Free Stock Analysis Report Elevance Health, Inc. (ELV): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks