Humana lifts annual profit outlook as medical costs remain controlled
+1 new source since this summary was written
Humana raised its full-year adjusted profit outlook on November 6 to at least $9.50 per share from at least $9 per share, citing medical costs that remained under control. Its insurance segment medical cost ratio was 93.7% for the quarter, below the 94.39% analyst expectation. Individual Medicare Advantage enrollment was up 23% year to date through the third quarter, while the company expects about 25% membership growth through 2026.
Why it matters
The higher earnings floor reflects Humana's expectation that medical and pharmacy cost trends will remain in line with or better than its forecasts. Cantor Fitzgerald analyst Sarah James said the outlook showed confidence in those trends, while Morningstar analyst Julie Utterback said the limited increase could disappoint investors because it implies a substantial fourth-quarter loss.
Key facts
- 1Humana increased its full-year adjusted profit forecast to at least $9.50 per share from at least $9 per share. finance.yahoo.com
- 2The insurance segment reported a quarterly medical cost ratio of 93.7%, versus an analyst expectation of 94.39%. finance.yahoo.com
- 3Individual Medicare Advantage enrollment rose 23% year to date through the third quarter, and Humana expects about 25% membership growth through 2026. finance.yahoo.com
- 4Humana posted an adjusted quarterly loss of 70 cents per share, compared with the $1 per share loss analysts expected. finance.yahoo.com
Summary written by AlphAI AI Desk from 3 of 3 sources. Not investment advice. Figures are as stated by the linked sources.