Humana (NYSE:HUM), a for-profit American health insurance firm, reported a beat on the top and bottom lines for the third quarter and strengthened its full year profit guidance, sending its shares higher on Wednesday.
Revenue for Q3 was $29.3 billion, topping estimates of $28.7 billion.
Earnings per share (EPS) of $4.16 surpassed the $3.48 expected by Wall Street analysts. However, this marked a drop from $7.78 in the year-ago quarter.
In prepared remarks, Humana (NYSE:HUM) CEO Jim Rechtin and CFO Susan Diamond attributed the company's better-than-expected Q3 performance to slightly higher than anticipated individual Medicare Advantage membership and member risk scores, combined with outperformance in CenterWell Primary Care.
For the full-year, Humana (NYSE:HUM) now expects adjusted EPS of “at least” $16, compared to its earlier forecast of “approximately” $16.
The firm also now expects its 2024 individual Medicare Advantage membership growth of 5% to 265,000, compared to its earlier forecast of 4.2% growth to 225,000.
The company said in addition to raising its guidance, it is contemplating additional investments, focused on supporting profitable membership growth and strengthening its Stars program.
It continues to expect an Insurance segment benefit ratio of approximately 90% for 2024.
“Our proactive anticipation of the higher industry cost trends in our original 2024 guidance has allowed us to deliver solid results to date and feel confident in our ability to deliver our full year 2024 adjusted EPS of ‘at least $16.00’,” Humana management said in prepared remarks.
“Moreover, we are committed to making strategic investments to support Humana’s long-term success.”
Shares of Humana added 4.4% post-earnings, trading hands at about $269.