Humana ( (HUM) ) has realeased its Q3 earnings. Here is a breakdown of the information Humana presented to its investors.
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Humana Inc. is a leading healthcare company that offers a range of insurance services and healthcare management solutions, primarily serving Medicare and Medicaid beneficiaries. The company is known for its commitment to improving health outcomes through its innovative healthcare delivery model, CenterWell.
In their third-quarter 2024 earnings report, Humana Inc. revealed a mixed financial performance with a GAAP earnings per share (EPS) of $3.98 and an Adjusted EPS of $4.16. The company updated its full-year EPS guidance to ‘at least $12.89’ on a GAAP basis and ‘at least $16.00’ on an Adjusted basis. Notably, Humana has increased its expected annual growth in individual Medicare Advantage membership by 40,000, projecting an overall growth of approximately 5%.
Key financial highlights from the report include revenues of $29.397 billion for the third quarter, an increase from $26.423 billion year-over-year, and a year-to-date total of $88.548 billion. Despite these gains, the company’s pretax results showed a decline, with $651 million reported for the third quarter compared to $1.098 billion in the same period last year. Humana’s benefit expense ratio also increased to 89.9% from 86.6% year-over-year, indicating higher costs in delivering benefits to its members.
The insurance segment reported revenues of $28.370 billion for the third quarter, while the CenterWell segment showed a modest revenue increase to $5.041 billion. Humana’s management remains focused on strategic initiatives to drive growth and improve efficiencies, as reflected in their value creation initiatives and cost-saving efforts.
Looking ahead, Humana’s management remains cautiously optimistic about the company’s future performance, with a focus on enhancing its Medicare Advantage offerings and expanding its CenterWell healthcare solutions. The company continues to navigate the complexities of the healthcare landscape with an emphasis on delivering value and quality care to its members.
