Wednesday, Humana Inc HUM reported first-quarter adjusted earnings per share of $7.23, down from $9.38 a year ago, beating consensus of $6.12.
The company posted revenue of $29.33 billion, up from $25.65 billion, beating the consensus of $28.47 billion.
Revenues increased due to higher Medicare premiums per member and growth in individual and group Medicare Advantage memberships.
Humana shares suffered after the company reported a surprise fourth-quarter loss and higher-than-expected medical costs from its Medicare Advantage business. Wednesday’s report was more positive.
Humana ended the first quarter with 6.1 million Medicare Advantage enrollees, up from 5.67 million in the first quarter of 2023.
In prepared remarks, management said the first quarter benefit ratio of 88.9% was in line with expectations as we took a more conservative approach to quarter-end bookings considering the disruption of Change Healthcare, although some indicators key Medicare Advantage (MA) individuals are broadly in line with slightly positive expectations.
Humana boasted 16.17 million physician members at the end of the first quarter.
Guide: Based on its performance, the company reaffirmed its 2024 adjusted earnings guidance of $16 per share versus the consensus of $16.36.
It also expects a 90% benefit ratio amid peak utilization of the Medicare Advantage (MA) program that dragged its finances into the fourth quarter.
Humana said it increased annual growth in its Medicare Advantage enrollees by 50,000, anticipating annual growth of about 150,000, or 2.8%.
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Price Action: At last check on Wednesday, HUM shares were down 3.68% at $315.86. The stock rose after earnings as much as 3.75% in the pre-market session.
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