- The shares of Humana Inc. ( NYSE: HUM ) jumped ~9% Thursday, recording the best intraday gain since April 2020 after the company raised its full-year 2022 outlook and set its 2025 adj. earnings per share guidance ahead of the consensus.
- In terms of adj. earnings per share, HUM revised its 2022 guidance to ~$25.00, up from $24.75, and set the mid-term 2025 forecast to $37.00, which stands better than the $35.99 in the consensus, indicating a 14% CAGR from 2022.
- As reasons for the decision, HUM cited favorable medical cost trends in its Medicare Advantage and Medicaid businesses and the absence of COVID headwinds.
- The shares of UnitedHealth Group Inc. ( UNH ), HUM’s rival in Medicare, and other health insurers exposed to Medicaid, including Elevance Health Inc. ( ELV ) and Centene Corporation ( CNC ), also rallied after the announcement.
- HUM shares have underperformed those of its peers over the past 12 months, as indicated in this graph.
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Humana adds 9%, highest in over two years, after lifting guidance