Anthem Inc. ANTM delivered first-quarter 2019 earnings of $6.03 per share, surpassing the Zacks Consensus Estimate by 2.9%. Additionally, the bottom line improved 11.5% year over year on the back of higher membership and the expansion of its clinical and specialty services.Anthem reported operating revenues of $24.4 billion, beating the Zacks Consensus Estimate by 1.7%. Moreover, the top line was up 9.2% year over year, aided by membership growth across the businesses and premium rate increases to cover the overall cost trends. However, this upside was partially offset by the one-year waiver of the health insurance tax in 2019.Quarterly Operational UpdateMedical enrollment inched up 1.2% year over year to 40.8 million members, backed by the Government Business enrollment and the Commercial & Specialty Business.Anthem’s benefit expense ratio of 84.4% expanded 290 basis points (bps) from the prior-year quarter, boosted by the one-year waiver of the health insurance tax in 2019.SG&A expense ratio of 13% contracted 230 bps from the year-ago quarter due to the year-long waiver of the health insurance tax in 2019, growth in the operating revenues and the overall expense management.Anthem, Inc. Price, Consensus and EPS Surprise Anthem, Inc. Price, Consensus and EPS Surprise | Anthem, Inc. QuoteStrong Segmental ResultsCommercial & Specialty BusinessOperating revenues were $9.3 billion in the first quarter, up 4.9% year over year.Operating gain totaled $1.6 billion, up 12.6% year over year. This upside is led by an improved medical cost performance in Local Group and higher administrative fee revenues in the company’s self-funded businesses.Operating margin was 16.9%, up 120 bps year over year.Government BusinessOperating revenues were $14.9 billion, up 12% from the prior-year quarter.Operating gain was $383 million, down 20.4% year over year due to the non-recurrence of retroactive revenue adjustments in 2018 and the continued elevated medical cost experience in Medicaid across select states. However, the same metric was offset by the reduced selling, general and administrative expensesOperating margin was 2.6%, down 100 bps year over year.OtherThe Other segment’s operating loss of $16 million is narrower than the year-earlier quarterly loss of $22 million.Financial UpdateAs of Mar 31, 2019, Anthem’s cash and cash equivalents summed $4.5 billion, up 13.9% from year-end 2018.As of Mar 31, 2019, its long-term debt less current portion inched up 1% to $17.4 billion from the level at 2018 end.Operating cash outflow at the end of the first quarter was $1.6 billion, down 26.4% from the figure as of Dec 31, 2018.Capital DeploymentDuring the first quarter, Anthem bought back shares worth $294 million. As of Mar 31, 2019, the company had shares worth around $5.2 billion remaining under its share buyback authorization.Moreover, the company paid a quarterly dividend of 80 cents per share, adding up to a distribution of cash worth $206 million.The company announced a dividend of 80 cents per share on Apr 23, 2019 for the second quarter, payable Jun 25 to shareholders of record on Jun 10, 2019.Revised Guidance for 2019Based on solid first-quarter results, Anthem has updated its outlook for 2019. The company’s adjusted net income is now expected to be higher than $19.20 per share, up from the prior projection of more than $19.Medical membership is still estimated in the range of 40.9-41.3 million.Operating revenues are predicted to be around $100 billion including the premium revenues of $90.5-$92.5 billion. Operating cash flow is envisioned to be higher than $5.2 billion.SG&A ratio is forecast in the band of 13.5% (+/- 30 bps).The company estimates the benefit expense ratio to be 86.2% (+/-30 bps).Zacks RankAnthem carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Upcoming Releases From Medical SectorSome other stocks worth considering from the medical sector are as follows:Aduro Biotech, Inc. ADRO is slated to release first-quarter earnings figures on May 1. This stock has an positive Earnings ESP of +82.00% and a Zacks Rank of 2. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.bluebird bio, Inc. BLUE has an Earnings ESP of +12.12% and a Zacks Rank #3. The company is set to report first-quarter earnings on May 1.Humana Inc. HUM is set to report first-quarter 2019 earnings performance on May 1. The stock has an Earnings ESP of +0.84% and a Zacks Rank of 3.Will you retire a millionaire?One out of every six people retires a multimillionaire. Get smart tips you can do today to become one of them in a new Special Report, “7 Things You Can Do Now to Retire a Multimillionaire.”Click to get it free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report bluebird bio, Inc. (BLUE): Free Stock Analysis Report Aduro Biotech, Inc. (ADRO): Free Stock Analysis Report Anthem, Inc. (ANTM): Free Stock Analysis Report Humana Inc. (HUM): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research