November 29, 2022

Business Company

Reuters Business

Humana trades higher on Q3 earnings beat, affirms FY22 outlook

Humana Waterside Building - Louisville, Kentucky

Thomas Kelley/iStock Editorial via Getty Visuals

Humana (NYSE:HUM) stock rose ~2% on Wednesday immediately after Q3 benefits defeat estimates and the organization affirmed its FY22 outlook.

Q3 Modified EPS rose +42.4% Y/Y to $6.88, beating analysts anticipations by $.60.

Earnings grew +10.16% Y/Y to $22.80B. Rewards expense ratio on GAAP foundation was 85.6%, in contrast to 87.1% in Q3 2021.

“Humana is very well positioned for the 2023 Medicare Benefit Annual Election Time period, with programs developed to meet customers’ affordability and healthcare wants, specifically significant specified the existing financial disorders and being aware of lots of seniors are on fixed incomes. In truth, 72 per cent of Humana programs have $ key treatment copays and 94 per cent incorporate dental rewards, with several obtaining expanded protection for necessities like groceries, rent and utilities,” mentioned Humana’s President and CEO Bruce Broussard.

Earnings from Retail phase amplified +9.48% Y/Y to $20.19B.

Team and Specialty segment revenue declined -8.5% to $1.55B. Healthcare Products and services section profits was $8.88B, when compared to ~$8.04B in Q3 2021.

Outlook:

Humana stated it affirmed its FY22 altered EPS outlook of ~$25 (consensus $24.99) which was revised upward at the firm’s Investor Working day in September 2022.

GAAP EPS is predicted ~$23.27.

“Taken with each other, our strategy layouts and working efficiency strengthen our confidence in attaining our new 2025 Altered EPS focus on of $37,” included Broussard.

Consensus EPS estimate for 2025 is $36.54.