HUM - Humana trades higher on Q3 earnings beat affirms FY22 outlook

Humana ( NYSE: HUM ) stock rose ~2% on Wednesday after Q3 results beat estimates and the company affirmed its FY22 outlook.

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

Revenue grew +10.16% Y/Y to $22.80B. Benefits expense ratio on GAAP basis was 85.6%, compared to 87.1% in Q3 2021.

"Humana is well positioned for the 2023 Medicare Advantage Annual Election Period, with plans designed to meet customers' affordability and healthcare needs, especially important given the current economic conditions and knowing many seniors are on fixed incomes. In fact, 72 percent of Humana plans have $0 primary care copays and 94 percent include dental benefits, with many having expanded coverage for essentials like groceries, rent and utilities," said Humana's President and CEO Bruce Broussard.

Revenue from Retail segment increased +9.48% Y/Y to $20.19B.

Group and Specialty segment revenue declined -8.5% to $1.55B. Healthcare Services segment revenue was $8.88B, compared to ~$8.04B in Q3 2021.

Outlook :

Humana said it affirmed its FY22 adjusted EPS outlook of ~$25 ( consensus $24.99) which was revised upward at the company's Investor Day in September 2022.

GAAP EPS is expected ~$23.27.

"Taken together, our plan designs and operating performance reinforce our confidence in achieving our new 2025 Adjusted EPS target of $37," added Broussard.

Consensus EPS estimate for 2025 is $36.54.

For further details see: