Elevance Health (NYSE:ELV) is showing steady progress with its Q3 2024 results, pulling in $44.7 billion in operating revenue, up 5.3% from last year. Despite facing headwinds in Medicaid, the company continues to manage costs well, keeping its adjusted operating gain strong at $2.4 billion. However, challenges from Medicaid membership losses led to a 19.8% dip in operating gain to $1.4 billion. These results reflect both the complexity of the current healthcare landscape and Elevance's ability to adapt with focused cost-cutting strategies.

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The Health Benefits segment saw a modest 4.2% boost in revenue to $38.3 billion but took a hit in operating gain, which dropped by 12.5% to $1.6 billion. The decline came from the fallout of Medicaid redeterminations, trimming its membership and pushing margins down. On the other hand, Carelon, which includes pharmacy and care services, surged ahead with a 15% revenue jump to $13.8 billion, and a 20% rise in operating gain to $0.8 billion, buoyed by strong demand for its products and the integration of Paragon Healthcare.

Looking ahead, Elevance remains confident, declaring a $1.63 per share dividend for Q4 2024 and executing a $60 million share buyback. The company is expecting full-year GAAP net income per share of $26.50 and adjusted net income of $33.00. Despite ongoing Medicaid challenges, Elevance is positioning itself to capitalize on efficiencies and emerge stronger, making it clear that they're in for the long haul.

This article first appeared on GuruFocus.