Humana Reports Strong Q2 Earnings Beat, Maintains 2024 Guidance; Shares Decline

LOUISVILLE – Humana Inc. (NYSE: HUM) reported strong results for the second quarter, exceeding analyst expectations with an adjusted earnings per share (EPS) of $6.96, surpassing the anticipated $5.87 by a notable $1.09. The healthcare company also achieved quarterly revenue of $29.54 billion, outpacing the consensus estimate of $28.53 billion.

The performance in the second quarter underscores Humana’s solid financial position, reflected in the adjusted EPS that demonstrates its capability to exceed market forecasts. Nonetheless, the company revised its full-year 2024 GAAP EPS guidance downward to about $12.81 from an earlier estimate of $13.93, while keeping its adjusted EPS projection at approximately $16.00. This adjusted EPS forecast highlights the company’s confidence in its operational strength, despite the lowered GAAP outlook.

The adjusted EPS guidance of $16.00 is slightly below the analyst consensus of $16.31, indicating a cautious but steady approach to financial forecasts for the remainder of the fiscal year.

Following the announcement, Humana’s stock experienced a decline of more than 7% at market open. Analysts from TD Cowen noted that they anticipated this cautious approach from the new CEO but still see potential for the company to outperform its guidance. They expressed eagerness to learn more details in upcoming discussions.

In terms of growth prospects, Humana has increased its expectations for 2024 individual Medicare Advantage annual membership growth by 75,000, now projecting an addition of approximately 225,000 members, or 4.2 percent. This revision signals the company’s expanding presence in the Medicare Advantage sector.

Humana’s CEO emphasized in a letter and prepared remarks the commitment to delivering value to members and shareholders. He stated, "Our second-quarter performance demonstrates our commitment to delivering quality care and services to our growing membership base. We are pleased with our strong results."

This article was generated with the support of AI and reviewed by an editor.