Humana Q4 Loss Widens On Charges

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Health insurer Humana Inc. (HUM) reported Wednesday a net loss for the fourth quarter that slightly widened from last year, hurt primarily by charges associated with productivity initiatives, despite 6.6 percent revenue growth. Adjusted earnings for the quarter topped analysts' expectations, while quarterly revenues missed it by a whisker.

The company also initiated adjusted earnings guidance for the full-year 2023, in line with estimates.

For the fourth quarter, the company reported a net loss of $0.12 per share, wider than $0.11 per share in the prior-year quarter.

Excluding items, adjusted earnings for the quarter was $1.62 per share, compared to $1.24 per share in the year-ago quarter.

On average, 20 analysts polled by Thomson Reuters expected the company to report earnings of $1.46 per share for the quarter. Analysts' estimates typically exclude special items.

Total revenues for the quarter grew 6.6 percent to $22.44 billion from $21.05 billion in the same quarter last year. Adjusted revenues were $22.44 billion. Analysts expected revenues of $22.50 billion for the quarter.

Premiums declined 7.3 percent to $21.28 billion and services revenue was down 19.9 percent to $1.0 billion from last year.

The company has completed its realignment into two segments, Insurance and CenterWell, to drive greater collaboration and synergistic growth across the enterprise.

Insurance segment revenues for the quarter grew to $21.60 billion from $20.14 billion and Centerwell segment revenues were $4.14 billion, up from $4.09 billion last year.

Looking ahead to fiscal 2023, the company now projects earnings of at least $27.57 and adjusted earnings of at least $28.00 per share. The Street is looking for earnings of $28.00 per share for the year.

The company also continues to project full-year individual Medicare Advantage membership growth of at least 625,000 members, representing expected year-over-year growth of approximately 13.7 percent. It also anticipates growth to be meaningfully higher than the industry growth.

"This robust membership outlook reflects high quality growth, with our improvement in retention more than doubling expectations, and marks a continuation of our strong track record of membership growth, with our compounded annual growth from 2018 to 2022 at 10.4 percent as compared to industry growth of 9.7 percent," said Bruce Broussard, President and CEO.

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