LOUISVILLE - Humana Inc . (NYSE: NYSE:HUM) reported a robust second quarter, surpassing analyst estimates with an adjusted earnings per share (EPS) of $6.96, a significant $1.09 higher than the expected $5.87. The healthcare giant also saw its quarterly revenue reach $29.54 billion, exceeding the consensus estimate of $28.53 billion.
The company's performance in the second quarter reflects a solid financial standing, with the adjusted EPS figure showcasing the company's ability to outperform market expectations. However, Humana revised its full-year 2024 GAAP EPS guidance downward to approximately $12.81 from the previously projected $13.93, while maintaining its adjusted EPS forecast at around $16.00. This adjusted EPS guidance aligns with the company's confidence in its operational strength, despite the lowered GAAP EPS outlook.
Humana's revised full-year guidance for adjusted EPS stands at $16.00, slightly below the analyst consensus of $16.31. The company's announcement indicates a cautious but steady approach to its financial projections for the remainder of the fiscal year.
The company's shares fell more than 7% at the market open.
TD (TSX:TD) Cowen analysts said they "previewed this potential conservatism from the new CEO, but still see a clear path to outperforming the guide."
"We look to the call for more details," they added.
In a move reflecting positive growth dynamics, Humana has raised its 2024 individual Medicare Advantage annual membership growth expectations by 75,000, now anticipating an increase of approximately 225,000 members, or 4.2 percent. This adjustment underscores the company's expanding market presence in the Medicare Advantage space.
A letter from the CEO and prepared management remarks were published on the Investor Relations page of Humana's website, offering further insights into the company's financial results and future earnings expectations.
In the words of Humana's CEO, "Our second quarter performance demonstrates our commitment to delivering value to our members and shareholders. We are pleased with our strong results and remain focused on providing quality care and services to our growing membership base."
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