Humana Posts Wider-than-expected Q4 Loss; Sees FY25 Adj. Earnings Below Market - Update

(RTTNews) - Health insurer Humana, Inc. (HUM), while reporting fourth-quarter results, on Tuesday affirmed previous estimate of fiscal 2025 adjusted earnings per share guidance to be 'at least in line with 2024 results'.

For the year, the company projects earnings of around $15.88 per share, and adjusted earnings of around $16.25 per share.

In fiscal 2024, reported earnings were $9.98 per share and adjusted earings were $16.21 per share.

The Wall Street analysts on average expect the company to report earnings of $16.91 per share. Analysts' estimates typically exclude special items.

Further, the company expects individual Medicare Advantage annual membership decline of approximately 550,000, or approximately 10 percent, from 2024. The outlook includes the company's decision to exit certain unprofitable plans and counties.

In its fourth quarter, Humana reported a wider-than expected loss. The company's loss was $862 million or $5.76 per share, compared to prior year's loss of $591 million or $4.42 per share.

Adjusted loss was $2.16 per share for the period. Analysts had expected loss of $2.12 per share.

The company's revenue for the period rose 10.4 percent to $29.213 billion from $26.462 billion last year.

Adjusted revenues were $29.20 billion, up from $25.73 billion a year ago.

The Street was looking for revenues of $28.84 billion for the quarter.

In pre-market activity on the NYSE, Humana shares were trading at $270.00, up 1.20 percent.

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