AT&T and ELV Outperform Q3 Expectations, Alaska Air Falls Short
AT&T Inc Surpasses Q3 Expectations
AT&T Inc has exceeded expectations in its Q3 2023 earnings report. The company reported earnings per share of $0.64 and revenues of $30.35 billion, surpassing the estimated EPS of $0.59 and revenue expectation of $28.69 billion. This impressive performance has led to a pre-market rise in the company’s shares, with a 4.05% increase to $14.90.
ELV Reports Strong Q3 FY 23 Results
ELV also reported strong results for Q3 FY 23, surpassing the Zacks Consensus Estimate. The company achieved an adjusted EPS of $8.99, exceeding expectations. Although the adjusted revenue growth of 7.2% at $42.48 billion slightly missed the target of $42.53 billion, ELV’s Health Benefits segment and Carelon’s revenues showed robust performance. The former experienced a 4.8% YoY rise in operating revenues to $36.7 billion, surpassing the forecasted $35.6 billion. Meanwhile, Carelon’s revenues jumped 14.3% YoY to $11.9 billion, beating the estimate of $10.8 billion.
Modest Rise in ELV’s Operating Gain
Despite ELV’s strong performance in its post-acute care services business and BioPlus acquisition, the unit’s operating gain only rose modestly by 1.4% to $650 million. This fell short of the expected $683 million. However, premiums grew 4.6% YoY to $35.3 billion, product revenues surged 30.3% to $5.2 billion, and net investment income increased by 32.9% to $493 million.
ELV’s Total Operating Margin and Cash Reserves
ELV’s total operating margin experienced a drop of 160 basis points YoY, reaching 4.1%. On the other hand, the company’s cash and cash equivalents soared 47.8% from the end-2022 level, reaching $10.9 billion.
Alaska Air Misses Q3 Expectations
In contrast to AT&T and ELV, Alaska Air Group fell slightly short of expectations in its Q3 2023 earnings report. The company reported earnings per share of $1.83 and revenues of $2.84 billion, slightly below the EPS estimate of $1.86 and revenue forecast of $2.87 billion. As a result, the company saw a pre-market decline of $0.66 to $32, a 2.02% decrease. Additionally, Alaska Air revised its 2023 EPS guidance downward to a range of $4.25 to $4.75 from the previous range of $5.50 to $7.50.
This article offers a comprehensive overview of the Q3 earnings reports of AT&T Inc, ELV, and Alaska Air Group. While AT&T and ELV outperformed expectations, Alaska Air fell slightly short. The market will closely monitor the performance of these companies in the coming quarters.
