2024-01-28 07:00:00 ET
Summary
- Humana's Q4 results fell well short of consensus and guidance for fiscal year 2024 is significantly lower, leading to an 11% drop in stock.
- Analysts were surprised by the big earnings per share miss and the lowered guidance, as other Medicare Advantage providers reported solid results and maintained their guidance.
- Humana's management cited increased medical costs and utilization of benefits as the primary factors for the poor earnings, and the company may need to raise rates to meet surging costs.
This article was co-produced with Chuck Walston
The CEO of Humana ( HUM ), Bruce Broussard, began the earnings call with the following comment:
…I'd like to start by stating the obvious. We are disappointed in the update provided today.
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For further details see:
Humana, We Have A Problem