Elevance Health Inc. reported third-quarter 2024 earnings that fell short of Wall Street expectations and cut its full-year profit forecast, citing unprecedented challenges in its Medicaid business. The company's adjusted earnings per share (EPS) for the quarter were $8.37, down from $9.67 in the previous year and below analysts' estimates of around $9.66. Despite the earnings miss, Elevance Health's revenue increased 5.3% year over year to $44.7 billion, surpassing forecasts of $43.46 billion. The insurer's adjusted operating margin declined to 5.3% from 6.0% a year earlier, while its Health Benefits operating margin decreased to 4.2% from 5.0%. Elevance Health lowered its full-year adjusted EPS outlook to approximately $33.00 from its previous guidance of at least $37.20. The reduced forecast reflects higher medical costs in its government-backed Medicaid plans. In response to the disappointing results and guidance cut, Elevance Health's shares dropped 12% in premarket trading, heading towards a new 52-week low.