Earnings Alerts

Humana Inc (HUM) Earnings: 2Q Adjusted EPS Beats Estimates with Strong Revenue Growth

  • Humana’s second quarter (2Q) Adjusted Earnings Per Share (EPS) exceeded estimates, coming in at $6.96 compared to the expected $5.87.
  • The company reported revenue of $29.54 billion, surpassing the estimated $28.49 billion.
  • Insurance revenue for the quarter was $28.53 billion.
  • The operating cost ratio matched estimates at 10.8%.
  • Centerwell, Humana’s healthcare services division, reported revenue of $4.95 billion, higher than the projected $4.76 billion.
  • Humana raised its 2024 individual Medicare Advantage annual membership growth forecast by 75,000, now expecting approximately 225,000 new members, a 4.2% increase.
  • The company revised its GAAP EPS guidance for the year ending December 31, 2024, from $13.93 to $12.81.
  • Humana reaffirmed its Adjusted EPS guidance of approximately $16.00 for FY 2024.
  • Analysts’ current ratings show 13 buy recommendations, 14 hold recommendations, and no sell recommendations for Humana stock.

Humana Inc on Smartkarma

On Smartkarma, independent analysts like Baptista Research have been providing in-depth coverage of Humana Inc. One report, titled “Humana Inc.: Enhanced Strategic Management of Benefit Costs and Member Acquisition Tactics! – Major Drivers,” highlights how Humana has shown a mixed set of results for the first quarter of 2024. Despite this, the company has adjusted its expectations for the upcoming year. With a reaffirmed full-year adjusted EPS guidance and increased membership growth outlook, Humana is demonstrating operational resilience and strategic expansions. Positive medical cost trends and growth in their primary care business further support this performance.

Another report by Baptista Research, titled “Humana Inc.: Impacts on Pharmacy Benefit Managers (PBMs) Resulting From IRA Changes & Other Major Drivers,” delves into Humana’s first quarter results for 2024. CEO Bruce Broussard and CFO Susan Diamond shared insights during a Q&A session post-earnings call. Broussard emphasized Humana’s strong start to 2024, reaffirming the company’s full-year adjusted earnings per share (EPS) guidance and increasing their individual MA membership growth outlook. These reports provide investors with valuable insights into Humana’s financial performance and future prospects.


A look at Humana Inc Smart Scores

FactorScoreMagnitude
Value3
Dividend2
Growth3
Resilience3
Momentum4
OVERALL SMART SCORE3.0

Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma

Humana Inc. is positioned well for long-term growth with a promising outlook based on its Smartkarma Smart Scores. With a strong momentum score of 4, the company is showing positive market momentum which bodes well for its future performance. Additionally, Humana Inc. scores decently across other key factors such as value, growth, and resilience with scores of 3 in each category. This suggests that the company is competitively priced, has good growth potential, and demonstrates resilience in the face of challenges.

Overall, Humana Inc., a managed health care company catering to members in the United States and Puerto Rico, appears to be on a solid trajectory for sustained success. While the dividend score is lower at 2, the company’s overall scores indicate a robust foundation for continued growth and performance.


Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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