• Tue. Dec 6th, 2022

Medical Cost Trends Benefit Humana Q2 Earnings, Raises FY22 Profit Outlook

ByVandana Singh

Jul 27, 2022
Medical Cost Trends Benefit Humana Q2 Earnings, Raises FY22 Profit Outlook

  • Humana Inc HUM has posted Q2 adjusted sales of $23.72 billion, beating the consensus of $23.47 billion.
  • The benefits expense ratio remained unchanged at 85.8%, and the operating cost ratio increased from 10.3% to 12.5%. 
  • Humana posted an adjusted EPS of $8.67, beating the consensus of $7.67 and $6.89 a year ago.
  • The 26% increase resulted from better-than-anticipated medical cost trends in the company’s individual Medicare Advantage and Medicaid businesses and lower-than-anticipated administrative costs.
  • Guidance: Humana expects FY22 adjusted EPS of at least approximately $24.75, up from prior guidance of $24.50, versus the consensus of $24.63.
  • The company still maintains a $0.50 EPS COVID-19 headwind for the back half of the year.
  • The company reaffirms FY 2022 expected individual Medicare Advantage membership growth of approximately 150,000 to 200,000.
  • Price Action: HUM shares are down 1.99% at $482.50 during the premarket session on the last check Wednesday.



Image and article originally from www.benzinga.com. Read the original article here.