08:46 AM EDT, 10/17/2024 (MT Newswires) -- (Adds comments on Medicaid in the sixth paragraph, share buyback in the seventh paragraph; updates stock move in the last paragraph.)

Elevance Health ( ELV ) reported Q3 adjusted earnings Thursday of $8.37 per diluted share, down from $8.99 a year earlier.

Analysts polled by Capital IQ expected $9.65.

Operating revenue for the quarter ended Sept. 30 was $44.72 billion, compared with $42.48 billion a year earlier.

Analysts surveyed by Capital IQ expected $43.14 billion.

The company said it now expects 2024 adjusted EPS of about $33, down from $37.20 anticipated previously. Analysts polled by Capital IQ expect $37.25.

The company said its results are being impacted by the "timing mismatch" between Medicaid rates and acuity. Chief executive officer Gail Boudreaux said the company is navigating "unprecedented challenges" in its Medicaid business. "We expect Medicaid rates will align with the needs of our members in time," she said.

The company also said it has authorized an $8 billion increase to its stock buyback program.

Meanwhile, the company maintained a quarterly dividend of $1.63 per share, payable Dec. 20 to shareholders of record on Dec. 5.

Shares of the company were down nearly 13% in recent Thursday premarket activity.

Price: 433.91, Change: -63.05, Percent Change: -12.69