Humana trades greater on Q3 earnings beat, affirms FY22 outlook

Humana (NYSE:HUM) inventory rose ~2% on Wednesday after Q3 outcomes beat estimates and the corporate affirmed its FY22 outlook.

Q3 Adjusted EPS rose +42.4% Y/Y to $6.88, beating analysts expectations by $0.60.

Income grew +10.16% Y/Y to $22.80B. Advantages expense ratio on GAAP foundation was 85.6%, in comparison with 87.1% in Q3 2021.

“Humana is nicely positioned for the 2023 Medicare Benefit Annual Election Interval, with plans designed to fulfill prospects’ affordability and healthcare wants, particularly essential given the present financial situations and understanding many seniors are on fastened incomes. In reality, 72 p.c of Humana plans have $0 major care copays and 94 p.c embody dental advantages, with many having expanded protection for necessities like groceries, hire and utilities,” stated Humana’s President and CEO Bruce Broussard.

Income from Retail phase elevated +9.48% Y/Y to $20.19B.

Group and Specialty phase income declined -8.5% to $1.55B. Healthcare Providers phase income was $8.88B, in comparison with ~$8.04B in Q3 2021.

Outlook:

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

GAAP EPS is predicted ~$23.27.

“Taken collectively, our plan designs and working efficiency reinforce our confidence in reaching our new 2025 Adjusted EPS goal of $37,” added Broussard.

Consensus EPS estimate for 2025 is $36.54.