Humana Q4 Profits Beat Expectations, Sees Growth Of 'At Least' 625,000 Medicare Advantage Members In 2023

  • Humana Inc HUM reported Q4 adjusted EPS of $1.62, up from $1.24 a year ago, beating the consensus of $1.46.
  • The company saw a decline in its benefit expense ratio, or the percentage of payout on claims compared to its premiums, by 1 percentage point to 87.5% for Q4. A lower ratio is better for a health insurer as it indicates a tight rein on costs.
  • Related: Why United Health, Humana And CVS Health Shares Are Moving Lower In Monday's After-Hours Session.
  • The company posted Q4 sales of $22.44 billion, missing the consensus of $22.50 billion.
  • The benefit expense ratio was 87.20%.
  • Guidance: Humana forecast adjusted EPS of at least $28 for 2023, in line with analysts' expectations.
  • "Humana significantly advanced its strategy in 2022 for continued leadership in integrated value-based care while delivering 22 percent Adjusted EPS growth. Looking ahead, we are confident in achieving our 2025 Adjusted EPS commitment of $37," said Bruce Broussard, Humana's President & CEO.
  • It expects to add at least 625,000 members to its Medicare Advantage plan this year, 13.7% higher compared with 2022.
  • Price Action: HUM shares are down 0.02% at $511.59 on the last check Wednesday.
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