AT&T and ELV Outperform Q3 Expectations, Alaska Air Falls Short

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AT&T and ELV Outperform Q3 Expectations, Alaska Air Falls Short
Credit: © Reuters.

AT&T Inc (NYSE: T ). exceeded expectations in its Q3 2023 earnings, reporting $0.64 per share and revenues of $30.35 billion, surpassing the estimated EPS of $0.59 and revenue expectation of $28.69 billion. The company's shares saw a pre-market rise by $0.58 to $14.90, marking a 4.05% increase.

On the same day, ELV also reported strong Q3 FY 23 results, surpassing the Zacks Consensus Estimate with an adjusted EPS of $8.99. Despite slightly missing the target with adjusted revenue growth of 7.2% at $42.48 billion against the expected $42.53 billion, the Health Benefits segment and Carelon's revenues showed robust performance. The former saw a 4.8% YoY rise in operating revenues to $36.7 billion, exceeding the forecasted $35.6 billion, while Carelon's revenues jumped 14.3% YoY to $11.9 billion, beating the estimate of $10.8 billion.

The unit's operating gain rose modestly by 1.4% to $650 million, falling short of the expected $683 million despite a strong performance from its post-acute care services business and BioPlus acquisition. 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.

However, ELV's total operating margin dropped by 160 basis points YoY to 4.1%, while cash and cash equivalents soared 47.8% from the end-2022 level to reach $10.9 billion.

In contrast, Alaska Air (NYSE: ALK ) Group's Q3 2023 earnings of $1.83 per share and revenues of $2.84 billion fell slightly short of the EPS estimate of $1.86 and revenue forecast of $2.87 billion. This shortfall led to a pre-market decline of $0.66 to $32, down by 2.02%. The airline also revised its 2023 EPS guidance downward to between $4.25 and $4.75 from an earlier range of $5.50 to $7.50.

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