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Humana Q4 Profit Tops Estimates; Announces Value Creation Initiatives

By RTTNews Staff Writer   ✉   | Published:   | Follow Us On Google News
rttnewslogo20mar2024

Humana Inc. (HUM) reported an adjusted profit in the fourth-quarter that also topped Wall Street estimates. GAAP consolidated revenues increased 10 percent primarily driven by: individual Medicare Advantage and state-based contracts membership growth; higher per member individual Medicare Advantage premiums; and the impact of Kindred at Home revenues from external customers. Revenues for the Retail segment increased by 9 percent year-on-year.

Looking ahead, the company expects that improved membership growth, further penetration in growing and maturing Healthcare Services businesses, and increased focus on productivity improvements will position it to deliver on long-term earnings target in 2023 and beyond.

In order to create capacity to fund growth and investment in its Medicare Advantage business and further expansion of its Healthcare Services capabilities in 2023, the company is committing to drive $1 billion of additional value for the enterprise through cost saving, productivity initiatives, and value acceleration from previous investments. As a result, the company said it will experience certain one-time restructuring charges in fiscal 2022 that will impact its GAAP results, but will be adjusted for non-GAAP purposes.

Fourth-quarter adjusted profit per share was $1.24 compared to a loss of $2.30, prior year. On average, 22 analysts polled by Thomson Reuters expected the company to report profit per share of $1.15, for the quarter. Analysts' estimates typically exclude special items.

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